UK borrowing costs fall and pound hits six-month low as Rachel Reeves pledges ‘iron clad’ commitment to budget fiscal rules – business live

<p>Rolling coverage of the latest economic and financial news, as chancellor’s speech is taken as a sign that tax rises and tighter budgets could be ahead.</p><ul><li><p>Politics Live: <a href="https://www.theguardian.com/politics/live/2025/nov/04/rachel-reeves-speech-tax-budget-labour-keir-starmer-latest-politics-news-live"><strong>Rachel Reeves to give speech preparing ground for budget tax rises</strong></a></p></li><li><p><a href="https://www.theguardian.com/uk-news/2025/nov/04/rachel-reeves-to-lay-groundwork-for-tax-rises-speech-budget">Reeves to lay groundwork for tax rises in ‘candid’ speech about budget</a></p></li></ul><p><strong>Reeves then warns that it is clear that the UK’s productivity performance is weaker than previously thought.</strong></p><p>She says she won’t preempt the conclusions of the Office for Budget Responsibility’s assessment of UK productivity (reminder, there is speculation the OBR could lower its estimate of trend productivity growth by 0.3%).</p><p>tariffs which have dragged on global confidence, dampening growth</p><p>inflation has been too slow to come down, with supply chains remaining volatile</p><p>the cost of government borrowing has increased around the world – something the UK has been particularly vulnerable to</p> <a href="https://www.theguardian.com/business/live/2025/nov/04/tax-rises-inevitable-rachel-reeves-budget-speech-borrowing-pound-stock-markets-business-live-news">Continue reading...</a>