UK's borrowing costs at 'historic highs,' says chancellor

The British chancellor on Monday said the country's borrowing costs are at "historic highs," adding that the UK's growth trajectory has been weak.

In his first major speech as chancellor, John Healey said changing the country's weak growth trajectory is "central" to his "purpose" in the role.

"Our borrowing costs are at historic highs," he said, noting that since 2009, high borrowing and low growth have allowed national debt to rise from 64% of GDP, the value of goods and services produced by the country, to almost 100% today.

To address this situation, he called for more devolution, more public leadership and control, more investment, more innovation, and more jobs.

"If I respond to speculation now, that will only fuel more speculation," he said when asked if he would raise taxes in October.

The BBC reported last week that UK borrowing costs rose again, with interest rates on 10-year debt reaching an 18-year high.

Growth – still fragile, but the fastest in the G7 in the first half of this year. And productivity – finally ticking up after decades of lagging behind our peers," he noted.

"On my first day in the Treasury, I said that fiscal discipline was my first priority as Chancellor," Healey said.