The expense of UK government borrowing has risen to its highest level for more than a year in the wake of Wednesday’s budgetary schedule.

The profit rate – the so-called profit – the government has to pay lenders when it borrows money from them over a 10-year period, climbed above 4.5% on Thursday before falling back.

Yields have been driven higher after the chancellor announced a sharp rise in government borrowing to finance spending projects, sparking expectations that profit rates will fall more slowly.

This matters because not only does it cruel the government will have to pay more to borrow, but debt safety yields are also used as a navigator for setting the rates on everyday loans and mortgages.

The jump in how much the government has to pay to borrow is a signal that investors regard lending it money as being a bigger hazard.

The profit on 10-year sovereign debt hit 4.53% mid-Thursday afternoon before falling back to 4.46%.

But following the rise Chancellor Rachel Reeves told Bloomberg TV the government’s “number one commitment” was “economic and budgetary stability”.

“We have now put our community finances on a stable and a solid trajectory,” she said.

Earlier, Sir Keir Starmer’s spokesperson said there had been reaction from “bodies such as the IMF welcoming [the government’s] way”.

The BBC’s economics editor Faisal Islam says so far the rise in borrowing costs is a natural economy adjustment rather than the panicked reaction which followed Liz Truss’s mini-budgetary schedule two years ago.

There has also been a wider rise in borrowing costs over the history month, but that has been a global movement led by the US, he adds.

In the budgetary schedule, Reeves announced nearly £70bn of extra spending a year, funded by responsibility increases for business and extra borrowing.

Analysts said the upwards movement in debt safety yields was an indication that the markets weren’t joyful about the boost in government spending.

Kathleen Brooks, an analyst at market activity firm XTB, said the movement indicated that the budgetary schedule “has not been well received” by markets.

“This is another sign that the chancellor overestimated the economy’s desire to absorb more sovereign obligation issuance from the UK,” she said.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said expectations for profit rate cuts had been scaled back, given forecasts that the budgetary schedule could push up expense boost over the next two years.

“budgetary markets are now not expecting rates to fall below 4% until 2026,” she said.

“This has been reflected in the spike in UK gilt yields to some extent, but given that sterling has remained lower against the dollar, it also indicates that there is a growing nervousness about the way Labour is steering the economy.”

She said debt safety yields were set to remain “volatile” as institutions capitalization government borrowing “keep a more suspicious eye trained on what the swollen resource budgetary schedule will be spent on”.