Economists are warning Britain is paying a “moron premium” on its debt, as borrowing costs climb back towards their highest since 1998. Yields on 30-year gilts spiked to 5.63% today. Tax-obsessive Torsten Bell is now drafting Rachel Reeves’ budget, with up to a £50 billion black hole to fill…

Simon French, chief economist at investment bank Panmure Liberum, says one of Bell’s first jobs will be to answer why the UK is facing a “ ‘moron premium’ on gilt yields”, adding :

“Markets want politicians to be pragmatists, not ideologues. The facts have fundamentally changed on debt sustainability. Bond pricing suggests UK fiscal policy is drifting without an anchor.”

Meanwhile, top economists are openly sounding the alarm of an IMF bailout. Stand by for the looming ‘Omnishambles Bud

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