Economists have warned that the government is “on course” to miss its own Budget borrowing targets after interest rates for UK long-term borrowing rose to their highest levels this century. The official forecaster, the Office for Budget Responsibility (OBR), will start the process of updating its forecast next month to be presented to parliament in late March. The rising cost of borrowing means “there is a significant chance that the OBR will judge that the Chancellor Rachel Reeves is on course to miss her main fiscal rule”, according to Ruth Gregory from Capital Economics. The yield on the 30-year gilt reached 5.35% on Wednesday, surpassing a previous high in August 1998.
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