Autumn Budget 2025: UK finance minister unveils tax hikes after accidental leak of policy measures
UK now “one of the best places to take duration risk,” Invesco says
Union Jack banners hang over New Bond Street as preparations continue for the Queen’s Platinum Jubilee celebrations in the capital, on 31st May 2022, in London, England.
Richard Baker | In Pictures | Getty Images
In the wake of the budget, Invesco said U.K. government bonds, or gilts, are its “favored sovereign market now.”
“High government debt and political flip-flopping has weighed on U.K. gilts this year,” Benjamin Jones, global head of research at the investment firm, said in an email. “[But] we believe this budget has provided enough to ease those fears a little.”
— Hugh Leask
Former minister says he doesn’t have high expectations of budget
“The budget effectively seems to be being driven by keeping the Labour party factions together and ensuring they can get whatever they do announce through parliament,” former Conservative U.K. Treasury Minister and Goldman Sachs Chief Economist Jim O’Neill told CNBC on Tuesday.
Reeves’s past attempts to slash the U.K.’s welfare bill were watered down following a rebellion among some of the Labour party’s own lawmakers.
“I don’t have high expectations for it being an ‘oh wow, this is really getting to grips with things’ budget, but it will definitely be done to keep the fiscal rules on balance, at least for now,” O’Neill added.
— Chloe Taylor
