Phillip Wickenden: The Budget before the Budget

clock • 5 min read

America’s $40trn debt milestone is already narrowing the choices available in Britain’s October Budget. Advisers should watch how that pressure travels from the bond market into mortgages, tax and client plans, writes Phillip Wickenden.

By the time John Healey reaches the despatch box on 28 October, part of his first Autumn Budget will already be written. Not in Whitehall, but in basis points. That sounds rather grander than it really is. Bond investors do not get a vote on the Budget. But they do get to price it and that price will help determine how much room Healey has before he makes a single promise. The OBR's March 2026 Economic and Fiscal Outlook estimates that a sustained one percentage point rise in bank rate and gilt yields would increase borrowing by £15bn in 2030-31. That is not £15bn of vanished headroom...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on UK

Why Andy Burnham must harness the power of long-term policy to give investors confidence
UK

Why Andy Burnham must harness the power of long-term policy to give investors confidence

'It’s fair to say it's been far livelier in Westminster this summer than usual'

James Alexander
clock 06 August 2026 • 4 min read
Healey chancellor appointment risks prompting defence spending fears in bond market
UK

Healey chancellor appointment risks prompting defence spending fears in bond market

Fresh questions for investors in UK assets

Alex Sebastian
clock 22 July 2026 • 4 min read
UK labour market and public finances among 'challenges' for Andy Burnham
UK

UK labour market and public finances among 'challenges' for Andy Burnham

Hiring conditions soften but wage pressures yet to fade

Michael Nelson
clock 21 July 2026 • 2 min read