British Chancellor John Healey has renewed his criticism of the 2022 Liz Truss mini-budget, arguing it continues to impact UK government borrowing costs four years later. In his first major speech since assuming office, Healey maintained that what he calls the “Truss penalty” remains a factor in current gilt yields, though critics dismiss this assessment as outdated political rhetoric.
Economists have pushed back sharply. Bond traders no longer attribute market conditions to events from 2022, according to industry observers. If Labour has had two years to restore fiscal credibility, why do UK yields still stand out as anomalies?
Meanwhile, a separate political storm has erupted over an immigration agreement between Reform UK’s Nigel Farage and France’s National Rally leader Jordan Bardella. The memorandum states France “will ordinarily accept” migrants intercepted in the English Channel and returned from British shores, though it only takes effect if both parties assume power.
French politicians across the spectrum have denounced the pact. Xavier Bertrand, president of the Hauts-de-France region, accused Bardella of surrendering French sovereignty. Even far-right rival Eric Zemmour criticized the deal, saying Bardella agreed to accept foreigners Britain doesn’t want. The controversy underscores how immigration policy remains a flashpoint in both countries.
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