REAL-TIME GLOBAL RESEARCH
Markets on alert as new UK PM outlines plans: First Insights
Research evidence excerpt
Markets on alert as new UK PM outlines plans: First Insights
Global Markets Research
21 July 2026First Insights
Economics - Global
Research Analysts
Markets on alert as new UK PM outlines plans European Economics
George Buckley - NIplc
• AndyBurnhamistheUK’snewPM,andinasurprisemoveJohnHealey(aLabour george.buckley@nomura.com
centristwithhighambitionsfordefencespending)isChancellor.Theadministration +44 (0) 20 7102 1800
haswastednotimeinmakingannouncements,butsofarhassaidthatitwillstickto Andrzej Szczepaniak - NIplc
thefiscalrules–albeitmakinguseoftheirflexibility(whateverthatmeansexactly). andrzej.szczepaniak@nomura.com
+44 (0) 20 7102 3167
• WithBurnhamhavingtalkedabouthispremiershipbeinga“circuitbreaker”fortheUK Josie Anderson - NIplc
andhisplanstomakeboldpolicydecisions,thisisunlikelytobeachievedby josie.anderson@nomura.com
tinkeringattheedges.Marketswillthereforebeonhighalertforanyshiftsin +44 (0) 20 7102 4284
economicpolicythatcouldultimatelycompromisetheUK’sfiscalandmonetarypolicy
framework.
• Forthetimebeing,webelievethepotentialsensitivityofthegiltmarkettothe
perception,orreality,oftheTreasurypursuingriskyfiscalstrategieswillprovetobea
sufficientbrakeonthegovernment’sfiscalandmonetaryambitions.
Burnham surprises with Chancellor pick
Andy Burnham replaced Keir Starmer yesterday as the UK’s new Prime Minister – the
seventh premier since 2016. Already there have been a flurry of headlines and comments
from the UK’s new leader, and Chancellor, in relation to the UK’s public finances and how
the administration intends to fund some of its ambitious plans.
Burnham’s choice of John Healey (former Defence Secretary and treasury minister,
among other government roles) as Chancellor of the Exchequer was a surprise. There had
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