"This is not just another party conference address. It's a make-or-break moment for credibility. Bond markets, already charging the UK a premium to borrow, will immediately reprice if they sense a repeat of the policy missteps of recent years, specifically the Truss-era. This would raise costs for the government, for companies, and for households."
"Multinationals in pharmaceuticals and energy have already delayed UK investments, while the abolition of non-dom status has accelerated capital flight that's now leaving a visible hole in public finances."
"Businesses need certainty, not surprises, The repeated tax raids, from windfall levies on energy to higher capital gains for entrepreneurs, have sent a chill through the economy. What markets and corporate Britain want to hear today is that there'll be no further shocks."
Investors, businesses and global bond markets are closely watching a major party keynote for clear signs of fiscal credibility and policy continuity. Bond markets are already pricing a UK borrowing premium and would reprice if they perceive repeat policy missteps, raising costs for government, companies and households. A Budget raising payroll taxes by £25 billion has coincided with falling vacancies, rising unemployment and growing corporate unease. Delays to multinational investment in pharmaceuticals and energy and abolition of non-dom status have accelerated capital flight and left a visible hole in public finances. Banks, pension savers and asset managers seek certainty about future levies, while investors demand fiscal discipline and a long-term growth strategy to restore market trust.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]