Gilt trip: why markets are punishing Rachel Reeves August 28, 2025 Without a credible and transparent medium-term fiscal plan, bond markets will continue to price in higher risk and demand higher returns, says Gareth Davies The UK economy faces an uncomfortable reality. On one side, inflation has continued to rise. On the other, government borrowing costs have surged, with gilt yields now at their highest level in [...]
Watch: Labour’s ‘total clusterf**k’ July 3, 2025 It wasn’t supposed to be like this. Exactly a year ago the Labour government swept into office promising stability, competence and economic growth. So why, on the one year anniversary of their victory, does it feel like their dying days? This has been a pretty extraordinary week in British politics and it’s a week that [...]
Sacking Reeves would make a bad situation even worse July 2, 2025 This government has made plenty of mistakes but ditching Rachel Reeves would be by far the biggest. While my advice to ministers remains “I wouldn’t have started from here” I have to recognise that a misstep now could make a bad situation worse. And the situation is bad. As Labour marks its first full year [...]
AIM boss: Inheritance tax sums don’t add up June 19, 2025 As AIM celebrates its 30th anniversary the market’s boss is eying a crucial birthday present from the Treasury: tax clarity. AIM shareholders were thrust into the tax spotlight last month after a leaked memo revealed Angela Rayner proposed Chancellor Rachel Reeves slap a series of taxes savers. Scrapping the inheritance tax exemption for AIM shares [...]
European bond rout worsens ahead of pivotal defence summit March 6, 2025 European bond yields continued to climb on Thursday as traders weighed expectations of higher borrowing from major European economies, which is expected to boost defence spending. German bonds suffered their worst day since the immediate aftermath of the fall of the Berlin Wall on Wednesday, after soon-to-be Chancellor Friedrich Merz laid out a bumper package [...]
Gilt yields stable ahead of crucial UK inflation data January 14, 2025 The yield on the 10-year gilt crept lower on Tuesday afternoon, leaving it on track to break six days of consecutive rises.
UK consumer confidence may struggle to ‘ride out’ uncertainty January 13, 2025 Consumer confidence ended 2024 on a high, but analysts have warned that it might not be able to ride out a wave of economic uncertainty this year. Confidence was at its highest since April 2021 in December, according to Yougov’s and CBRE’s monthly consumer confidence survey. Business activity, optimism about the future, and perceptions of [...]
Pound sterling suffers as traders pare bets on Fed rate cuts January 13, 2025 The sell-off comes after a bruising week for UK assets last week, with sterling falling over three per cent and gilt yields picking up to the highest levels in decades.
Stakes are high for UK economy ahead of crunch week of data January 13, 2025 The latest inflation figures, covering December, will be published on Wednesday before GDP figures for November will be released on Thursday.
Reeves vows ‘action’ to meet fiscal rules amid rise in borrowing costs January 11, 2025 Rachel Reeves has said she will “take action” to meet her fiscal rules following turbulence on the gilt markets. Increases in the Government’s borrowing costs have sparked concern that the Chancellor will be unable to meet her debt and spending targets, requiring either tax rises or deeper spending cuts when she delivers a fiscal statement [...]