London’s FTSE 100 dropped further to close about 0.9% down at 9,117 on Tuesday, the lowest since August 8, as growing concerns about the country's financial situation weighed on real estate companies, utilities, banks and retailers. Britain's long-term borrowing costs have reached their highest level in 27 years, adding pressure on Chancellor Rachel Reeves ahead of the autumn budget. This may force Reeves to consider tax rises, or spending cuts, to ensure she still hits her fiscal rule to have debt falling in five years’ time. Sentiment was also cautious globally, with attention fixed on upcoming US labor market data. Whitbread (-4.5%), Legal & General Group (-4.5%), Unite Group (-4.3%), Phoenix Group Holdings (-4.2%), Land Securities Group (-4.2%) and Marks & Spencer (-4.5%) posted the biggest declines. On the upside, Fresnillo surged 5.2% to top the index, while Endeavour rose 1.5%, supported by stronger gold prices.