Britain’s government has spooked markets and riled businesses
Tax rises were inevitable. Such a shaky start was not
When politicians start talking about bond yields it is a sure sign that trouble is afoot. By that measure, the new year has been troublesome indeed for the Labour government. Yields on 30-year gilts (British government bonds) have spiked to a near-three-decade high. Sterling has tumbled. Businesses are grumbling, too, about chunky tax rises and a higher minimum wage due to bite in April—as well as the lack of a convincing plan for boosting growth. The last time firms were this downbeat, surveys say, was after Liz Truss’s brief and disastrous premiership in 2022 (see chart 1).
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This article appeared in the Britain section of the print edition under the headline “A shaky start ”
Britain January 18th 2025
- Britain’s government has spooked markets and riled businesses
- David Lammy’s plan to shake up Britain’s Foreign Office
- Britain is becoming a well-mannered but deceitful society
- Homelessness in England has risen by 26% in the past five years
- A plan to reorganise local government in England runs into opposition
- Has the Royal Navy become too timid?
- Labour’s credibility trap
From the January 18th 2025 edition
Discover stories from this section and more in the list of contents
Explore the editionMore from Britain
Has the Royal Navy become too timid?
A new paper examines how its culture has changed
A plan to reorganise local government in England runs into opposition
Turkeys vote against Christmas
David Lammy’s plan to shake up Britain’s Foreign Office
Diplomats will be tasked with growing the economy and cutting migration
Labour’s credibility trap
Who can believe Rachel Reeves?
Britain is becoming a well-mannered but deceitful society
Technology and sloppy government are to blame