Market News
Big investors welcome more headroom in UK budget, fret over long-term uncertainties - REUTERS
By Yoruk Bahceli, Dhara Ranasinghe and Nell Mackenzie
Summary
- Vanguard bought gilts after budget
- UK government bonds, pound rally
- Investors warn backloaded tax hikes are risky
LONDON, Nov 26 (Reuters) - Big investors on Wednesday broadly welcomed British finance minister Rachel Reeves' tax-raising budget that gives her more leeway to meet her fiscal targets, but they warned it may not be enough if growth falters because tax hikes are due to kick in later.
Reeves delivered a highly anticipated budget that raises taxes and doubles her fiscal margin, known as headroom, to meet Britain’s fiscal targets, exceeding market expectations, even as welfare spending rises.




