02/11/2026
WeekWatch
UK chancellor John Healey could breathe a sigh of relief on Wednesday afternoon after market reaction to his first Budget was muted.
In the run up to the Budget, Healey had been at pains to avoid being painted as anti-business. But thanks to higher government borrowing costs and the deficit, investors knew some tax rises were on the way.
In the end, the worst fears were avoided. An additional 3% banking surcharge for 15 months from the start of next year was less than feared and, as a result, shares in larger banks rose.
Bond investors responded calmly to the Budget. 10-year gilt yields have now been trending lower since peaking in early October, in an encouraging sign for the government.
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