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UK Finance Minister Rachel Reeves' spending plans risk creating 'a snowball effect' that pushes borrowing costs higher

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Policies risk creating "a snowball effect" that pushes Britain's 105 billion-a-year interest payments higher, experts told CNBC.
Rachel Reeves, the UK's Chancellor of the Exchequer, is set to present a spending review that focuses on managing the nation's finances amidst pressures from the bond market. The review aims to balance economic growth with fiscal responsibility, with Reeves emphasizing the need for sustainable public spending. Key points include potential adjustments to public sector budgets, investments in infrastructure, and measures to reassure investors about the UK's economic stability. The bond market's reaction will be crucial, as rising yields could increase borrowing costs and impact the government's fiscal strategy.

Read the Full CNBC Article at:
[ https://www.cnbc.com/2025/06/12/uk-spending-review-reeves-plans-contending-with-the-bond-market.html ]