{"id":129287,"title":"UK Stocks Slide as Budget Turmoil Sparks Deepening Sell-Off","publisher":"Share Talk","author":"sharetalk","published":"2025-11-14T11:22:15+00:00","modified":"2025-11-14T11:22:15+00:00","canonical_url":"https://www.share-talk.com/uk-stocks-slide-as-budget-turmoil-sparks-deepening-sell-off/","markdown_url":"https://www.share-talk.com/uk-stocks-slide-as-budget-turmoil-sparks-deepening-sell-off.md","json_url":"https://www.share-talk.com/uk-stocks-slide-as-budget-turmoil-sparks-deepening-sell-off.json","category":"Blogs","categories":["Blogs","Technology","Technology, Media & Telecoms"],"tags":["AstraZeneca","BT","Diageo","Federal Reserve","FREE","FTSE 100","FTSE 250","FTSE100","Howden Joinery","ITV","National Grid","Sainsburys","Smith & Nephew","Tate & Lyle","Vistry","WISE"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/10/FTSE-100-31-oct-scaled.webp?fit=1200%2C900&ssl=1","format":"news","language":"en-GB","content":"The **FTSE 100** plunged deeper into the red on Thursday after reports that **Sir Keir Starmer and Chancellor Rachel Reeves** had **abandoned plans to raise income tax** in the upcoming Budget, triggering fresh uncertainty over the Government’s fiscal strategy.\n\nThe UK’s blue-chip index has **fallen 1.3% so far today**, putting it on course for its **worst session since the market slump that followed Donald Trump’s “Liberation Day” tariffs**. The more domestically exposed **FTSE 250** performed even worse, **dropping 1.6%**, marking its **steepest decline in two months**.\n\nThe sell-off intensified as **UK government borrowing costs surged**, with the yield on **10-year gilts** — a key measure of the national debt’s servicing cost — **jumping as much as 13 basis points to 4.57%** in early trading. It later eased slightly to **4.51%**, still up eight basis points on the day.\n\n**Lale Akoner**, analyst at **eToro**, said the sharp market reaction reflected deeper concerns over fiscal discipline and the credibility of the Budget:\n\n> “Markets reacted sharply today following reports that the UK government may reverse plans to raise income tax. The volatility reflects a deeper concern: fiscal credibility is critical, not only for stabilising public finances but also for easing the cost-of-living crisis.”\n\nThe turmoil capped a volatile trading session as investors reassessed the UK’s fiscal outlook amid rising borrowing costs and a weakening pound."}