Rachel Reeves: Iron Chancellor may need flexibility to get growth

The market turbulence sparked concerns that a verdict of sorts was being made on the chancellor.

Reeves has pledged not to borrow to fund day-to-day spending and to get debt falling as a share of national income by the end of this Parliament. That meant, the rise in global and UK debt interest costs would require some spending cuts.

The message was sent out that the government, with its massive majority, could do and would do what it takes to keep to the self-imposed rules, which it said were “non-negotiable”.

The markets have now recovered all their negative moves. Short term and long term government borrowing costs are all lower than at the beginning of the year.

While the “gilt crisis” hyperbole was overdone, there have been consequences.