British Finance Minister Rachel Reeves has announced a new budget that includes more taxes on ordinary workers but increased public spending on welfare programs. The new plan will take the government’s tax revenue to a post-war peak of 38% of GDP by 2031, according to the Office for Budget Responsibility (OBR). This will give the government more room to meet its deficit reduction targets, prompting investors to buy long-term government bonds, causing yields to fall sharply.
