Prime Minister Andy Burnham is facing a sharp reaction from bond markets to his early economic pronouncements, which have been characterized as "left-wing rhetoric" by some commentators. The reaction comes amid growing unease about the content of an upcoming budget.
Ten-year gilt yields reached an 18-year peak at one point, raising concerns about potential tax increases and rising mortgage rates. During his first Prime Minister's Questions session, Burnham declined to rule out tax rises or increased borrowing. He spoke of "growth in every postcode" and "bringing back hope," phrases that some critics have dismissed as platitudes.
Economist and ally of the Prime Minister, Lord O'Neill, described the tone of Burnham's parliamentary debut as "the last thing investors wanted to hear."
In contrast, Conservative frontbencher Kemi Badenoch is outlining a strategy for welfare cuts, aiming for further savings on top of an identified £23 billion. The Daily Mail comment suggests that Burnham's approach to the benefits bill and his belief that long-term claimants desire employment are at odds with taxpayer sentiment and market expectations.
The commentary also touches upon geopolitical concerns, noting increased tensions with Russia following Burnham's support for Ukraine. Russian President Vladimir Putin's remarks about targeting UK factories have been interpreted as a sinister development, reinforcing calls for increased defense spending.
Separately, a comment from within the Daily Mail criticized Labour's Harriet Harman for remarks made about Claire Coutinho, a pregnant Conservative frontbencher on maternity leave. Harman suggested Coutinho's promotion was based on "woke" grounds, a comment the Daily Mail framed as an example of a double standard for the left.