Robert Jenrick, Reform UK's shadow chancellor, has asserted that financial markets cannot be compelled to trust Britain and that only a credible plan for spending cuts will restore confidence. This statement follows a period where ten-year gilt yields reached their highest level since the financial crisis yesterday, and thirty-year yields touched levels not seen since 1998.
Mr Jenrick attributes these market reactions to stubbornly high inflation and a government he claims lacks fiscal credibility. He highlighted that the Office for Budget Responsibility (OBR) now forecasts borrowing of £86bn in 2028-29, an increase from £39.4bn before Labour took office. The OBR also forecasts debt-interest costs of £137bn by 2030.
Reform UK proposes a clear alternative, including plans to cut the welfare bill by £51bn a year. The party also intends to implement extensive cuts to net zero subsidies, civil service headcount, foreign aid, and handouts for migrants. Additionally, Reform UK plans to set out further economic proposals at its party conference this week, including measures to reduce red tape and reverse Rachel Reeves’s job’s tax on British workers.