Fallout continues over budget income tax U-turn, with Treasury saying expected fiscal gap has dropped to £20bn
This is from Helen Miller, director of the Institute for Fiscal Studies thinktank, on the market reaction to the chancellor’s reported budget U-turn.
Investors will have 2 broad concerns about news that Chancellor won’t increase income tax rates
1. Does it signal less willingness to do politically difficult things
Britain’s long-term borrowing costs were sent soaring as reports suggested the latest U-turn would leave Rachel Reeves scrambling to fill a gaping black hole in the nation’s finances just two weeks before the 26 November budget.
Yields on 30-year UK government bonds, also known as gilts, jumped as much as 14 basis points in early trading, and the yield on 10-year gilts also shot up 12 basis points – rising the most since July.
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Source link : https://www.theguardian.com/politics/live/2025/nov/14/rachel-reeves-income-tax-budget-keir-starmer-labour-uk-politics-latest-news
Author : Andrew Sparrow
Publish date : 2025-11-14 16:21:00
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