borrow

Many analysts expect that tax rises or spending cuts will be needed to meet the chancellor's self-imposed borrowing rules.

The average duration of U.S debt at present is 71 months, so raising increased sums of short-term debt increases the risk associated with short-term borrowing, limiting flexibility and raising interest costs.

They would also need to borrow some money on top of that, but the interest they pay is usually less than a company would.

The think tank pointed to rising borrowing costs, weaker growth forecasts and spending commitments made since the spring as reasons for the government's tight position.

Wider spreads can improve the profitability of lending while increasing the costs of borrowing.