'It is not free money': Bond market warns Reeves to tread carefully with Budget borrowing plans

Expected changes to fiscal rules

Linus Uhlig
clock • 4 min read

Fixed income managers have cautioned Chancellor Rachel Reeves to temper her spending promises in the upcoming Autumn Budget to maintain the faith of the gilt market.

Like the last time Labour came from opposition into power, the chancellor's missions for government have been defined by a three-word mantra: 'Invest, invest, invest', something Reeves has reiterated ahead of her inaugural Budget next Wednesday (30 October). While the chancellor has expressed a desire to "borrow to invest" and rewrite the fiscal rules to help facilitate this, fixed income managers have warned the chancellor to remain wary of the sensitivities of the country's bond market.  "The UK's creditworthiness is no longer strong enough for the government to do as they please," ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Linus Uhlig
Author spotlight

Linus Uhlig

Linus Uhlig is a senior reporter at Investment Week

More on Bonds

Fixed income investment set to rise as bonds hit double digit growth in asset allocation

Fixed income investment set to rise as bonds hit double digit growth in asset allocation

Assets in fixed income up 11%

Patrick Brusnahan
clock 19 June 2025 • 3 min read
US GSS bond issuances falls to lowest level since 2017

US GSS bond issuances falls to lowest level since 2017

Down 25% amid political turmoil

clock 13 May 2025 • 3 min read
Deep Dive: Private markets could be the future of 60/40 portfolios

Deep Dive: Private markets could be the future of 60/40 portfolios

Split between traditional and revamped model

Cristian Angeloni
clock 25 April 2025 • 5 min read
Trustpilot