Reeves mulls deeper cuts to public services as borrowing costs soar

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.The prospect of a fresh spending squeeze comes as Britain’s financial position is being rattled by a dramatic sell-off in the global market for government debt, fuelling a rise in the UK’s long-term borrowing costs to the highest level since 1998.On another day of drama in the markets after a challenging start to the year for Labour, Darren Jones, the chief secretary to the Treasury, sought to soothe investor jitters by insisting the markets for UK government bonds, known as gilts, remained “orderly”, while confirming that the government would stick to its fiscal commitments

Cuts, tax rises and doing nothing: Rachel Reeves’ options to tackle economic woe

The UK government has come under pressure from a bond market sell-off and the tumbling pound, heaping pressure on the chancellor, Rachel Reeves, to reassure investors about Britain’s economic and financial position.After a challenging first six months in power for the government, the chancellor’s options have been limited by Labour’s political promises. There are a range of measures, of varying severity, the Treasury and the Bank of England could still take, depending on how market conditions unfold.Reeves could yet catch a lucky break. Some City analysts believe financial markets have overreacted to the challenging economic and fiscal outlook

Google and Microsoft donate $1m each to Trump’s inaugural fund

Google and Microsoft have donated $1m each to Donald Trump’s inauguration fund, following in the footsteps of other major companies including Amazon, Meta, OpenAI and Uber.“Google is pleased to support the 2025 inauguration, with a livestream on YouTube and a direct link on our homepage. We’re also donating to the inaugural committee,” Karan Bhatia, Google’s global head of government affairs and public policy, confirmed in a statement to the Guardian on Thursday.The tech giant made the donation on Monday, CNBC reported. José Castaneda, a Google spokesperson, told the outlet that the company has donated to previous inauguration funds and previously hosted livestreams of inauguration ceremonies

British politics are not Elon Musk’s to toy with | Letters

Your article (Elon Musk turns on Nigel Farage and calls for new leader of Reform, 5 January) raises fascinating insights as to how international interests play an ever more direct role in the British political system. Discretion is not assured. What is becoming clear is that the likes of Nigel Farage seem to have dispensed with the illusion that Brexit was about political independence. Instead, the need to comply with far-right US agendas, the infantile inconsistencies of rogue James-Bond-type billionaires, and to accept millions of pounds in overseas income are openly accepted.The positioning of Reform UK’s development in relation to overseas interests is at odds with the earlier rhetoric of national sovereignty

Stuart Hogg was a world class Scottish rugby player who now has to relocate his moral compass | Robert Kitson

Scotland has not always been blessed with rugby players of genuine world class but prime-time Stuart Hogg was a rare exception. At the height of his powers he was the Six Nations Player of the Year in successive seasons in 2016 and 2017, mixing acceleration and attacking intent with a just-try-and-stop-me attitude that set him apart from the average workaday pro.The talented lad from Hawick was a big fish in a series of smallish pools – the Borders, Scottish rugby, Exeter – and grew accustomed to being hailed as king of his local oval-ball castle. While, behind closed doors, not being entirely the man his many fans thought him to be.When he pleaded guilty to a domestic abuse charge in early November – for which he has now been sentenced and spared jail – the court reports painted a grim picture of a controlling husband who was frequently a nightmare when drunk

‘Phenomenal’ Zoe Aldcroft named England women’s rugby union captain

Zoe Aldcroft has been installed as England women’s captain for 2025, taking over from Marlie Packer, and is set to lead John Mitchell’s side into the World Cup this year.Aldcroft, who was named World Rugby’s women’s player of the year in 2021, has undertaken the role on a number of previous occasions including the emphatic victories over Scotland and Wales in the 2024 Six Nations but has been appointed on a permanent basis. The Gloucester-Hartpury forward will be supported by Packer and Megan Jones, who have been named as vice-captains.“Zoe is a phenomenal rugby player who consistently performs to a high standard in the [Premiership] and at international level,” said Mitchell. “She leads by example through her world-class actions, on and off the field, and is an integral member of our leadership group