Budget 2024: Borrowing prices surge after Reeves plots debt-fuelled spending spree

Happy Budget Day and welcome to the Telegraph’s live coverage of the first major fiscal event under a Labour government in 14 years.

The Chancellor has an been told she has an “opportunity to boost confidence” among businesses after weeks of gloomy messaging about a £22bn “black hole” in the public finances.

Stay with us for the latest insight on what is expected in Rachel Reeves’ speech, which we will cover live.

We will bring out insight from journalists across the Telegraph newsroom, outlining what is important and why.

5 things to start your day

  1. Reeves to make Bank of England put climate change and growth on equal footing | Chancellor calls on Andrew Bailey to reinstate environment as one of key priorities
  2. Investors pull £300m from stocks in race to beat inheritance tax raid | Budget uncertainty triggers scramble to offload funds that own UK-listed companies
  3. High-paid workforce shrinks to record low | Proportion of those on more than £53,500 falls to 23pc as Reeves prepares minimum wage pay rise
  4. Jeremy Hunt launches last-ditch attempt to block report into £22bn ‘black hole’ | Former chancellor warns Rachel Reeves would use the OBR’s audit to justify huge tax rises
  5. Jeremy Warner: Buyers for Reeves’s extra debt are disappearing fast | Gilts haven’t looked this vulnerable to a loss of confidence since the mini-Budget

What happened overnight

Bitcoin surpassed $73,000, approaching a record high as investors keep a cautious eye on the US presidential election.

The leading digital currency was trading around $72,400 overnight, after climbing as high as $73,563.63 in late US trade, just shy of its all-time peak of $73,797.98 in March.

The surge in the price of bitcoin is seen as a bet on a Republican victory, as Donald Trump has emerged as the pro-crypto candidate.

Oil prices rebounded slightly after falling sharply earlier in the week as fears of an escalation in the Middle East eased after Israel’s strikes on Iran avoided the country’s energy infrastructure.

Meanwhile, investors are hoping a key political meeting in Beijing next week will unveil a major stimulus plan for the Chinese economy, which has struggled to recover from the pandemic with growth dragged down a debt crisis in the property sector.

Asian stocks fell following a mixed lead from Wall Street with markets in wait-and-see mode ahead of the US election and the Federal Reserve’s rate decision next week.

Tokyo and Taipei were the only advancers, with the Japanese market up 1.3pc as it continued its run-up on the yen’s weakness and tech gains.

Hong Kong, Shanghai, Sydney, Seoul, Singapore, Kuala Lumpur, Manila and Bangkok all retreated.

On Wall Street, the Nasdaq hit an all-time high, fuelled by rising tech stocks. It rose 0.8pc to 18,712.75. The S&P 500 rose 0.2pc to 5,832.92, while the Dow fell 0.4pc to 42,233.05.

Yields on 10-year US Treasuries briefly rose above 4.3 percent yesterday, the highest since early July, but fell in the evening to 4.259pc, down from 2.275pc late on Monday.