LONDON (Reuters) – The first budget of Britain’s Labour government was about restoring stability to the public finances with two strong new fiscal rules, Prime Minister Keir Starmer’s spokesperson said, declining to comment on a fall in government bond prices.
British two-year government borrowing costs rose sharply for a second day on Thursday as investors judged the Bank of England would cut rates more slowly due to bigger-than-expected government borrowing and spending in the budget.
The pound fell against the euro and the U.S. dollar.
Asked to comment on the fall in bond prices, the spokesperson said: “We don’t comment on market movements.”
“The Chancellor (Rachel Reeves) has been very clear that first and foremost, this budget has been about restoring fiscal stability, and she’s outlined two new robust fiscal rules, which put public finances on a sustainable path,” the spokesperson said.
(Reporting by Alistair Smout; Editing by William Schomberg)
