Premium bonds might beat the bond market bullies | Letter

Phil Spence responds to Larry Elliott’s article about budget deficits, which lead to bond markets having a big say in how state finances should be run

I read the article by Larry Elliott with interest and thought I could suggest one small act of rebellion that is easily in the chancellor’s hands and could raise substantial sums of money (Let France be a warning, Rachel Reeves: stand up to the bond market vigilantes, or they’ll come for Britain next, 11 September).

At the moment, interest on the vast majority of government borrowing is paid to banks, pension funds and other lenders, a significant proportion of which are based overseas. Interest paid on those borrowings varies, but can exceed 5%.