Dan Coatsworth, head of markets at AJ Bell, said: “Rachel Reeves’ unusual stance of giving a big speech on the eve of the Budget has left investors with more questions than answers, and done nothing to remove uncertainty around taxes.
“The bond market would be happy if the Chancellor raises taxes as it would help to improve public finances and make the UK less risky from an investment perspective.
“It was telling that the 10-year gilt yield fell as Reeves began her speech, indicating that bond investors thought we’d get confirmation that taxes would go up at the Budget.
“But as it became clear that Reeves was merely dancing around the topic, yields went back up.
“The Chancellor said the speech was about giving context to the challenges facing the government, but she batted away questions about taxes faster than an Olympic table tennis player.
“Many people are fed up with this game. There are growing calls for the Chancellor to be crystal clear in her plans and make bolder decisions.
“No-one will be shocked at tax rises and many people believe it is better to sort the situation out once and for all, rather than keep tinkering at the edges.
“This feels like Reeves’ last chance to fix the house, otherwise her days could be numbered.”
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