Yield on 30-year gilts highest since 1998 as rout triggered by global factors underlines tricky backdrop John Healey faces

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The chancellor’s headroom against Labour’s fiscal rules could be almost halved at his first budget if the current global bond sell-off persists into the autumn, economists say.

The UK’s long-term borrowing costs jumped to their highest level since early 1998 on Tuesday as investors dumped government bonds, betting on higher inflation.

Chancellor says he wants everyone from apprentices to senior economists to take part in brainstorming exercise

John Healey has asked junior Treasury staff – including IT workers and apprentices – to send him ideas for his October budget, saying he will listen to all suggestions regardless of grade or profession.

The chancellor’s unorthodox approach comes as he faces a tricky autumn with expected inflation rises, sluggish growth and potential cuts from other departments to fund extra defence spending.