Why is Britain’s economy so stuck? It’s the tension between what voters want and what the bond markets allow | Larry Elliott
Britain's economy remains stagnant due to a conflict between voter demands for relief from rising living costs and the constraints imposed by bond markets, which influence government spending through borrowing costs. Political fragmentation and public dissatisfaction with major parties have heightened the pressure on policymakers to act, but financial market reactions limit their options. The resulting fiscal caution, including tax increases and borrowing limits, has constrained economic growth despite efforts to maintain fiscal discipline.
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Market opening at the London Stock Exchange, 19 January 2026. Photograph: Jonathan Brady/PAView image in fullscreenMarket opening at the London Stock Exchange, 19 January 2026. Photograph: Jonathan Brady/PAOpinionEconomic policyWhy is Britain’s economy so stuck? It’s the tension between what voters want and what the bond markets allowLarry ElliottThere is no such thing as the Bond Dealers party, but there might as well be – the people who trade in UK debt exert a stranglehold over our politicsThu 30 Apr 2026 03.00 EDTLast modified on Thu 30 Apr 2026 03.02 EDTShareThe days of two-party politics are over. When voters go to the polls in England next week, they will have five main contenders to choose from.
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