Oil price rise creates more pressure on UK policymakers before budget

Treasury sources concede ‘less room’ for manoeuvre as global bond selloff also hikes government’s borrowing costs

• International bodies warn of rising debt and borrowing risks

• Burnham stands by claim UK is ‘in hock’ to bond markets

Oil prices lurched upwards again on Thursday, creating a growing headache for UK policymakers ahead of John Healey’s budget next month.

While Healey has been keen to present an upbeat picture of the UK’s economic prospects, Treasury sources concede the sharp jump in oil and gas prices means they have “less room” than a month ago.

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