Reeves mulls deeper cuts to public services as borrowing costs soar

Chancellor could slash departmental spending in spring after ruling out tax increase, officials reveal

Rachel Reeves is considering imposing steeper cuts to public services to repair the government's finances after a bruising week in which investors drove up the cost of UK borrowing and pushed the pound to a 14-month low.

Government officials have told the Guardian the chancellor is prepared to reduce departmental spending even more than planned, having ruled out increases to either borrowing or taxes. Any measures to avoid breaking her fiscal rules could be announced at an emergency statement in the spring.