UK's new £140bn economic plan raises eyebrows as markets react negatively
Fresh economic strategy with massive borrowing fails to impress financial experts and markets. Bond yields jump while sterling drops as investors question the long-term effects of tax-and-spend approach
The new economic strategy featuring £140bn in borrowing isnt working as planned. Rachel Reeves financial approach got harsh feedback from markets and experts alike‚ causing trouble in bond trading and currency rates
Global markets expected nordic-style investment plan but got something different: a mix of tax raises and spending (which looks quite similar to US-style economics). The debt markets dont like it; yields went up to 4.57% on nov-1st while pound went down — showing its more than just regular market moves
We need less gallivanting around seeking validation from bodies who dont understand Britain
The spending plan has some big issues: only 1/3rd of £72bn extra money by 29ʼ goes to public works; most cash goes elsewhere including wage increases. Public investment stays at 2.5% GDP — way below what other big economies do
Here are main problems with the new plan:
* Too much day-to-day spending
* Not enough real investment
* Higher taxes that hurt small firms
* Weird energy rules that dont help anyone
The UKʼs money situation isnt great — weʼve got minus £1.05 trillion in international investments and big spending gaps. The new plan keeps old problems: low production low savings but high spending. Markets think its looking like that mini-budget mess from couple years back — not as bad but still getting yellow flags from experts
