Burnham on the defensive, it’s markets not rules that matter

How to achieve the government’s commitment to raise defence spending to 3.5% of GDP by 2035 will be a far bigger problem for prospective PM Burnham than the £4.7bn defence “black hole”. And a bit of creatively could loosen the restraint imposed by the fiscal rules. But ultimately it is the bond market that matters, and it's unlikely to tolerate much more public borrowing.  

We will be welcoming your questions at our online Drop-in briefings on AI's macro and market implications on Tuesday, 7th July. Register here for sessions in Asian, Europe or US trading hours.