British financial assets were under pressure Friday on growing speculation that the Labour government has ditched plans to raise income taxes in a crucial budget at the end of the month. Treasury chief Rachel Reeves was clearly considering becoming the first Chancellor of the Exchequer in 50 years to increase the basic rate of income tax. The increase in the yield is particularly illustrative as it shows that investors are demanding a bigger return on their bond holdings, a clear sign that they are fretting about the outlook for the U.K.’s public finances and the government’s ability to act boldly over fears higher income taxes would anger voters.Read More
