Investors urge calm over bond sell-off as UK borrowing costs ease back from 27-year high – business live

Rolling coverage of the latest economic and financial news, as UK 30-year yields rise above Tuesday’s levels

Rachel Reeves’s autumn budget will take place on 26 November

UK hit by fresh sell-off in government bond markets as pound weakens

Newsflash: Rachel Reeves’s autumn budget will take place on 26 November, the Treasury has announced.

The late November budget date will give the chancellor time to prepare the ground for potential tax changes, and address the likely budget ‘black hole’ that could have been widened by the sell-off in the bond markets.

Reeves is understood to have been exploring several tax-raising measures over the summer months amid concern that rising borrowing costs, a sluggish growth outlook, higher inflation and welfare U-turns could expose a shortfall in the government finances worth up to £40bn.

The chancellor and the prime minister have, however, committed to sticking to Labour’s manifesto promise not to raise taxes on “working people”, including through income tax, national insurance and VAT.

“Riding a bike too slowly can make you tip over. That’s the risk facing the eurozone. Yes, the economy has been growing since the start of the year, but the pace is painfully slow.

In August, the HCOB Composite PMI Business Activity Index stood at 51.0 – barely above stall speed. Political tensions in France and Spain, uncertainty around the EU-US trade deal, and ongoing troubles in the key automotive sector aren’t helping. On the bright side, increased defense spending across Europe and Germany’s infrastructure program offer hope that the economy might keep moving forward – and avoid falling off the bike.