UK government borrowing costs have reached their highest levels in years, driven by rising bond yields and economic uncertainty. The implications for citizens include potential spending cuts by the government, increased tax burdens, and volatility in the mortgage market. With inflation above targets and concerns about economic performance, financial experts warn of challenges ahead. Chancellor Rachel Reeves has pledged to ensure day-to-day expenses are covered by taxes, but higher borrowing costs could limit spending on public services. The bond market’s fluctuations may impact mortgage rates and annuity purchases.