"Rachel Reeves is facing a £6.4bn blow from rising gilt yields, economists have warned, threatening to throw her tax and spending plans into disarray. Mr. Goodwin has estimated that Ms. Reeves's fiscal headroom to meet her borrowing targets will fall from £9.9bn to £3.5bn by 2030. Higher market interest rates have already eaten some of Labour's fiscal headroom, leaving Reeves with just one option: to implement further tax hikes. The UK continues to borrow as if we're in the middle of a war or pandemic."