After Starmer’s resignation, bond traders are most concerned about who will take charge of the UK’s finances

Reeves has consistently adhered to her fiscal rules, which require covering the government’s daily spending with tax revenues while gradually reducing the national debt burden. After years of political turmoil, this stance has helped calm market sentiment. These fiscal rules have also become a core policy label during Starmer’s tenure, with investors having repeatedly opposed any signs of fiscal discipline being relaxed. For this reason, Andy Burnham, who has confirmed his intention to run for Prime Minister, has also explicitly ruled out the possibility of changing the existing fiscal framework. Jordan Rochester, Head of Fixed Income, FX, and Commodities Strategy for EMEA at Mizuho, stated, “Compared to Burnham, I’m more concerned about who will become Chancellor. I seriously doubt whether Reeves will be able to continue in the post.”