"The borrowing cost on the UK's 10-year gilt has reached its highest level in about 17 years, and the 30-year gilt yield is at levels last seen in 1998. UK inflation was reported at a 3.5% price increase in November, the highest in the G7, according to the OECD. The Chancellor is prepared to impose more severe spending cuts on departments, having ruled out increasing either borrowing or taxes. The Conservatives criticized the Chancellor for proceeding with her planned trip to China instead of addressing the rising cost of borrowing."