01-14-2025, 08:02 PM
The Liberal Party notes with concern the current turmoil in the UK bond market, the rise in government borrowing costs and the effects on the value of Sterling.
Whilst concerns over government spending extend around the world, the UK is particularly vulnerable. The Labour Party failed to disclose its spending and tax plans during the election campaign and in the run up to the Autumn statement to avoid scrutiny, undermining confidence amongst businesses.
The Liberal Party notes that during this turmoil that Chancellor Rachel Reeves has prioritized a visit to China over engaging with markets to clarify the UK’s financial outlook.
The chancellor’s claim that her visit to China will generate £600 million of secure growth in the next 5 years ignores the rising cost of financing government borrowing in the long-term.
The Liberal Party is now gravely concerned that the returning chancellor may be forced into an emergency budget involving tax raises, cuts to services, or a combination of both at a time of stagnation in growth and stubborn inflation.
Whilst concerns over government spending extend around the world, the UK is particularly vulnerable. The Labour Party failed to disclose its spending and tax plans during the election campaign and in the run up to the Autumn statement to avoid scrutiny, undermining confidence amongst businesses.
The Liberal Party notes that during this turmoil that Chancellor Rachel Reeves has prioritized a visit to China over engaging with markets to clarify the UK’s financial outlook.
The chancellor’s claim that her visit to China will generate £600 million of secure growth in the next 5 years ignores the rising cost of financing government borrowing in the long-term.
The Liberal Party is now gravely concerned that the returning chancellor may be forced into an emergency budget involving tax raises, cuts to services, or a combination of both at a time of stagnation in growth and stubborn inflation.