"Chancellor Rachel Reeves will seek to show the benefits of a prudent, stable approach pursued by Reeves against calls within the Labour party to spend more and not be 'in hock' to the bond market. Reeves can point to the actions she took at the last Budget as paying dividends."
"No major changes are expected - the government has moved to make major announcements only once a year, usually at the autumn Budget. This will reduce the ongoing speculation over fiscal policy that has fed business and investment uncertainty. As such, don't expect fireworks or any rabbits in the hat."
"UK Gilt yields have continued to fall after a brief spike ahead of the November set piece, with the 10yr yield lately touching its lowest in over a year at 4.3%. Lowering borrowing costs by assuaging bond markets with relative fiscal restraint is a key part of the government's attempt to meet fiscal rules and bring down the deficit."
The UK Spring Statement scheduled for March 3 provides Chancellor Rachel Reeves an opportunity to highlight the benefits of fiscal stability despite broader economic concerns. Following potential Labour losses in the Gorton and Denton by-election, the government aims to project responsibility and competence. No major policy changes are anticipated, as the government has consolidated major announcements to the annual autumn Budget to reduce ongoing fiscal policy speculation. The Spring Statement will primarily present updated forecasts from the Office for Budget Responsibility. Reeves seeks to demonstrate the advantages of prudent fiscal management against internal party calls for increased spending. Recent gilt yields have fallen to their lowest levels in over a year at 4.3%, reflecting market confidence in the government's fiscal restraint approach and efforts to meet fiscal rules while reducing the deficit.
Read at London Business News | Londonlovesbusiness.com
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