FTSE and UK bond markets steady as Reeves unveils UK growth strategy

finance
Created 1/29/2025
Updated 1/29/2025

The FTSE held steady (+0.3%) as Chancellor Rachel Reeves announced a UK growth strategy centered on infrastructure, including support for a third Heathrow runway. While Reeves emphasized long-term benefits like job creation and economic revitalization, market reactions were muted, with little movement in bonds (gilts) or the pound. Experts noted the plan lacks immediate economic stimulus and may face opposition due to its focus on airport expansions over workforce development. Easing pension fund rules and bureaucracy were seen as positives, but analysts called for stronger support for UK capital markets to drive growth.

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