UK Chancellor Rachel Reeves came into government promising a growth miracle, economic security and stability in the public finances. Six months in and her project is close to being in tatters. Reeves is struggling to maintain the confidence of financial markets as the UK becomes the focus of a global bond selloff. Despite her and premier Keir Starmer making "fiscal responsibility" a watchword of last year’s election campaign that helped deliver the first Labour government in 14 years, they’ve been hit with an investor revolt that’s pushing up borrowing costs and risking a doom loop for the public finances. Martin Weale, a former member of the Bank of England’s monetary policy committee, who’s now professor of economics at King’s College London says if Rachel Reeves opts to change the UK’s fiscal rules there may be ‘tears tomorrow’. He joined Lizzy Burden and Stephen Carroll on Bloomberg Radio.
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