Labour leadership contender Andy Burnham has cancelled a high-profile meeting with City investors, amid growing concerns over the party's borrowing plans and the pressure on the bond market.
The postponement of the meeting, which was expected to take place next week, has been attributed to the ongoing unease within the party over its fiscal policies, particularly in relation to borrowing.
As the Labour leadership contest continues to heat up, the cancellation of this meeting has sparked concerns among investors and analysts, who had been looking forward to discussing the party's plans with Mr Burnham.
The bond market has been under significant pressure in recent months, with the yield on the UK's 10-year gilt reaching a 14-year high of 3.5% in March, before receding slightly. This has led to increased costs for the government, which has been exacerbated by the ongoing economic uncertainty.
Analysts have been warning of the potential risks associated with Labour's borrowing plans, which could further exacerbate the pressure on the bond market. The postponement of the meeting has only served to heighten these concerns, with many investors now questioning the party's ability to manage its finances effectively.
While the cancellation of the meeting is unlikely to have a direct impact on the Labour leadership contest, it does raise important questions about the party's fiscal policies and its ability to manage the country's finances effectively.