Government borrowing costs at highest since 1998 - what it means for your taxes

Long-term government borrowing costs have risen to 27-year highs, with fears it could lead to higher tax rises in the Autumn Budget .

The yield on UK government bonds – sometimes referred to as gilts – has jumped to the highest level since 1998.

Gilts are essentially someone lending money to the UK government in return for the promise of interest payments.

A higher yield means the government has to pay more money to investors.

Here’s why borrowing costs are rising according, according to experts, and what it means for possible changes in the Budget.

Why are gilt yields rising?

Government bonds have been under pressure globally, with yields rising across the United States and Europe.

Generally speaking, yields tend to rise in more uncertain economic times as investors look to be co