28 September 2026
If you are covering the Chancellor of the Exchequer's speech at the Labour Party Conference, please find below market reaction from Richard Carter, head of fixed interest research at Quilter Cheviot:
"John Healey used his first conference speech as Chancellor of the Exchequer to reinforce his desire for fiscal responsibility, perhaps with one eye on what bond markets are saying at the moment, and another on what they might say when he delivers his Budget in a month. Markets are crying out for fiscal responsibility from the UK, particularly given its exposure to inflation linked shocks, but we await if it is something that can still be delivered by this new government.
"Initial evidence suggests it is going to be difficult to achieve. Borrowing figures remain incredibly challenged, while events in the Middle East show no sign of calming and thus energy costs will remain raised. With Andy Burnham nobly talking about his desire to launch a new social care service and welfare reform bill that is proving particularly difficult to win over Labour backbenchers, that desire for fiscal discipline could be left wanting unless growth prospects suddenly change.
"Healey speaks about a new phase of reindustrialisation and growth being the only answer to the UK’s problems. He wants to make it easier for young people to get into new technologies and put the UK at the forefront of 21st century industry, with some small announcements of funding for such activities today. However, while the UK is home to many leading names in this space, achieving this will be difficult given high energy costs and an increasing regulatory burden on employers. Without it, economic growth will remain subdued until the time the public finances allow the government to be more ambitious.
"Indeed, Healey will be hoping the Budget next month will pass without much controversy or negativity. Burnham’s ten year strategy that he has spoken of before is arguably of more importance to financial markets and the future of bond yields. Indeed, with No.10 and the Treasury supposedly now in lockstep, today’s speech by Healey was much more targeted at the Labour audience. Healey’s job is to keep the narrative of fiscal discipline front and centre, meaning what he delivers at the despatch box at next month’s Budget will be of much more importance than today’s speech."
