Gilts ended little changed after John Healey's budget, which included £112 billion of borrowing for the current financial year and £250.6 billion of planned bond issuance for 2026/27. A report on bank tax plans reportedly lifted bank shares before Healey spoke.
British government bonds ended Wednesday little changed after Healey's budget offered help to households and motorists facing rising global energy costs while raising taxes on banks. Borrowing of £112 billion for the current financial year matched primary dealers' forecast, while planned bond issuance of £250.6 billion for 2026/27 was £1 billion above their consensus.
The calm contrasted with the run-up to Rachel Reeves's November 2025 budget, when a report that she had abandoned a likely income tax increase prompted a gilt sell-off. Healey brought the budget date forward and used restricted-access groups of officials to limit uncertainty and speculation, a person familiar with preparations said.
The budget was not entirely leak-free. After a report that taxes on banks would rise less than feared lifted bank shares, Treasury Committee chair Meg Hillier asked the finance ministry and Financial Conduct Authority to establish what happened and whether banks had been briefed ahead of the budget. A Treasury spokesperson said it did not comment on budget speculation.
