Starmer crisis shows UK still lives at mercy of the bond market


UK Prime Minister Keir Starmer and Chancellor of the Exchequer Rachel Reeves (left). — Bloomberg

GLOBAL bond investors reminded Prime Minister Keir Starmer of a harsh truth of British politics: The market’s verdict can be swift and punishing.

Starmer’s ruling Labour Party started the day on a face-saving mission after its MPs forced it to scrap £5bil (US$6.8bil) worth of cuts to welfare spending on Tuesday evening – making it even harder for Chancellor of the Exchequer Rachel Reeves to tame the government’s budget deficit.

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