Government borrowing costs jump on reports of Reeves dropping income tax rise

UK government borrowing costs have risen in reaction to reports the chancellor will not increase income tax in the upcoming Budget.The interest rate on 10-year government bonds, known as the yield, jumped from 5.44% to 5.56%, indicating the cost to government if it chose to borrow over this length of time.The jump in yields came as financial markets showed concern about how the government would meet its spending…