Burnham tries to calm bond market fears as sell-off threatens crucial first budget
UK Prime Minister Andy Burnham is attempting to stabilize bond markets following a sell-off triggered by concerns over government spending plans. Investors are reacting to fears of rising inflation and deficits ahead of the government's first budget.
Why it matters
Market volatility regarding government debt can increase borrowing costs, directly impacting the government's ability to fund public services and economic policy.
Andy Burnham insists the budget in October will keep to fiscal rules while also reducing pressure on the cost of living. Andy Burnham insists the budget in October will keep to fiscal rules while also reducing pressure on the cost of living. Business Burnham tries to calm bond market fears as sell-off threatens crucial first budget Prime minister promises his government will make decisions ‘grounded in fiscal responsibility’
Prefer the Guardian on Google Andy Burnham moved to calm volatile bond markets on Wednesday as surging borrowing costs threatened to wreck plans for his government’s crucial first budget next month.
After a days-long sell-off of government bonds – and with the chancellor, John Healey, facing the prospect of sharply reduced spending power, Burnham used his first appearance at prime minister’s questions to promise decisions would be “grounded in fiscal responsibility”.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in