LondonRebuke for the British Ministry of Economy, which fails to put the bow towards growth and the fall of inflation. While the pound fell to its lowest value against the dollar since 2023 on Thursday (1,224, before recovering to 1,228), the cost of funding ten-year bonds has risen to levels that were not seen since the financial crisis of 2008, with the yield standing at 4.93%, the highest peak of the day, to fall this evening to 4.8%
Amid calls for ram minister Rachel Reeves to call off her trip to China this weekend, her No.2 Darren Jones has had to make an emergency appearance in Parliament to ensure the government remains committed with its fiscal stabilization plan, and that it does not intend to bypass its own self-imposed rules. In short, that it will no longer borrow to finance day-to-day spending, and that it will only do so for medium- and long-term investment projects.
Jones’ speech in the Commons came after the Speaker of the House, Lindsay Hoyle, accepted an urgent question from the Conservative opposition regarding the “increasing pressure on the public finances due to (rising) costs of loans”. The tories they seek to subject Keir Starmer’s government to a furious siege by land, sea and Twitter/X. And if since January 1 the key issue to erode the Downing Street machinery has been the unfounded accusations, with Elon Musk at the helm, of permissiveness of the premier faced with networks of pedophiles who abused girls in different cities of the country while he was Crown prosecutor (2008-2013), the country’s economic difficulties have concentrated in recent hours the reasons for the attacks.
Some attacks that have on the increase in Social Security taxes from April one of the great battle horses of the right and the extreme right, just at the time when due to the flu epidemic from the last week of 2024 and the first days of 2025, the situation of many hospitals is reaching collapse, with more than 4 hours of waiting for patients to be treated in emergencies.
Delicate moment
Some economists believe that Minister Reeves is in a position of great weakness and if high debt costs persist, the Treasury will have to raise more taxes or austerity measures for essential services, which only would add pain and suffering to a country that, in practice, has suffered from it since the aforementioned financial crisis of 2008. Reeves, however, has pledged not to raise taxes any further and, if if needed, would cut spending on services. A policy that would have an impact on the popular classes and that would be taken advantage of both from the right – which has punished public services during 14 years of governments: 2010-2024 – and from the extreme right, on the rise all over the world , also in the islands.
The last time the UK faced a similar crisis was in 2022, when the then prime minister, Liz Truss, caused billions of pounds of pension funds to evaporate in the wake of her mini-budget, which included unfunded tax cuts (abolishing the top 45% income tax rate and reversing planned corporate tax increases) and significant borrowing without a tax plan clear Investors lost confidence in the UK government’s ability to manage debt and this led to a massive sell-off in government bonds, which sent the cost of borrowing soaring and led to emergency intervention by the Bank of England. ‘England. City experts, however, consider that the situation is not, not even remotely, like it was then.
Source: www.ara.cat
