International Edition · Mon 26 Oct 2026
Economics · via Financial Times
Gilt Buyers to Healey: Keep Your Hands Off the Fiscal Rules
Large bond investors want a disciplined Budget this week with no tinkering with the fiscal rules, after a rise in UK borrowing costs.
Not investment advice: this article is for information only.
Chanan Zevin - Chief Editor and Head of Desks
Published
The message
Big bond investors are urging Chancellor John Healey to deliver a 'disciplined and pragmatic' Budget that leaves the fiscal rules untouched, the Financial Times reported. The Budget is due on 28 October, according to the House of Commons Library.
The rules
The Commons Library briefing says the rules require a current-budget surplus and falling public sector net financial liabilities as a share of GDP in the third forecast year, 2029-30. The Institute for Fiscal Studies' advice to the chancellor is summed up in its title: let sleeping dogs lie.
Background
Rising gilt yields have eaten into the fiscal headroom set out in the spring. Any hint of creative accounting could push yields higher again and cancel out the savings.
Our view
Credibility is now the cheapest policy tool Healey has. Changing the rules would buy room on paper and lose it in the bond market.
Sources
- Financial Times, ''Do no harm' — what gilt investors want from Healey in the Budget', 26 October 2026 · ft.com
- House of Commons Library, 'Autumn Budget 2026: Background briefing' (CBP-12245) · researchbriefings.files.parliament.uk
- Institute for Fiscal Studies, 'Chancellor Healey meets the bond market: let sleeping dogs lie', October 2026 · ifs.org.uk