Reeves’s plan to ditch income tax rise prompts government bond sell-off

Switch in budget plan causes cost of UK government borrowing to rise by the most in a single day since early July

• What are Reeves's options after U-turn on income tax rates?

UK bond markets took fright on Friday after it emerged that Rachel Reeves had ditched plans for a manifesto-busting increase in income tax at this month's autumn budget.

On a day of choppy trading in the City, the cost of UK government borrowing rose by the most in a single day since early July, when a tearful appearance by Reeves in parliament spooked investors.