The markets have rewarded the new prime minister and his chancellor with a “dullness dividend”.
A return of confidence has led to a lowering of long-term borrowing costs for the government, which in turn has allowed Rishi Sunak to postpone the planned Autumn Statement until 17 November.
The delay has also improved the likely outlook for the public finances by enabling the Office for Budget Responsibility to factor in cheaper government borrowing costs. The savings will be significant, although they are unlikely to be under £10bn a year.
The FT (£)
and The FT (£)
