An unambiguously negative development

Andy Burnham warned 'basket case' Britain cannot withstand any more tax hikes as economy flounders

Andy Burnham has been warned that ‘basket case’ Britain cannot withstand any more tax hikes after a bleak two years for the economy under Labour...

Matthew Ryan, head of market strategy at Ebury, added: ‘Sterling and gilts are holding up for now, but we view this as an unambiguously negative development for UK assets.

‘Burnham sits firmly to the left of the Labour Party, and his record as mayor points to a significant step-up in public spending, a higher tax burden and greater gilt issuance. This is an experiment that the UK can ill-afford.

‘The critical near-term question is who becomes Chancellor. Any indication that a new Chancellor intends to loosen or abandon the existing fiscal rules could trigger fresh selling in UK assets.’

 

I lived upon words, and believed in phantoms.

Ivan Turgenev – Rudin (1856)