Reform UK chiefs ask to meet with gilt holders amid bond rout
Robert Jenrick has asked to meet with top traders at the likes of Barclays and Goldman Sachs in London and New York who hold UK gilts as a recent surge in borrowing costs threatens the UK’s public finances. Reform’s Treasury spokesman announced at the Reform conference that he had written to the major holders of [...]
Reform UK's Treasury spokesman, Robert Jenrick, has requested a meeting with top traders from financial institutions such as Barclays and Goldman Sachs, who hold UK government bonds (gilts). The request comes as rising borrowing costs could put the UK's public finances under strain. Jenrick announced at the Reform conference that he had written to major gilt holders to promote the party's plans to reduce borrowing and implement fiscal discipline.
He stated that tax cuts would be implemented responsibly to stimulate economic growth. To restore confidence and lower interest rates, Jenrick emphasized the need for fiscal discipline, supply-side reforms, and support for key institutions.
The letter sent to market participants highlighted that medium-term gilt yields fell slightly on Thursday, having reached near-two-decade highs due to concerns over the UK's fiscal issues and the risk of inflationary pressures. City analysts projected that at least £6 billion would be cut from Chancellor John Healey's fiscal headroom.
During the Reform conference, Jenrick revealed that a Reform government would be willing to cut £80 billion in public spending, primarily through welfare reforms. This would account for approximately £50 billion of the total cuts. He also emphasized the need to stop "pussyfooting" on cutting government expenditure across the civil service, claiming that fiscal tightening could save the UK government around £30 billion annually in debt interest payments.
The UK is expected to pay more than £110 billion in interest payments to lenders this year, as the Office for Budget Responsibility forecasts that expenditures will rise in the coming years to surpass the education budget. A city source suggested that the financial services sector was facing "stacked odds" against it, potentially due to tax hikes.
Tax experts warned that rising borrowing costs could pressure Chancellor Healey to increase taxes, creating a drag on economic activity. Elisa Sofocli of Blick Rothenberg cautioned that if the UK becomes more expensive and complex without delivering certainty, businesses may seek opportunities elsewhere.
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