British borrowing costs surge, sterling plunges after new economic plan

Published by
Reuters UK

By Amanda Cooper and Alun John LONDON (Reuters) -British government bond yields surged by the most in a day in over three decades on Friday, the pound slid to a fresh 37-year trough against the dollar and stocks hit six-month lows after UK finance minister Kwasi Kwarteng laid out a series of tax cuts in a bid to boost growth. The package, estimated to cost 45 billion pounds ($50 billion) by the financial year 2026/27, was the largest at a single event since 1972, according to the Institute for Fiscal Studies, a think tank. Income tax cuts, a drop in property taxes, tax-free shopping for overse…

Read More