---
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"
date: 2025-11-14
canonical: "https://www.share-talk.com/uk-stocks-slide-as-budget-turmoil-sparks-deepening-sell-off/"
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"]
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format: "news"
language: "en-GB"
---

# UK Stocks Slide as Budget Turmoil Sparks Deepening Sell-Off

**Published:** November 14, 2025
**Author:** sharetalk
**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)

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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.

The 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**.

The 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.

**Lale Akoner**, analyst at **eToro**, said the sharp market reaction reflected deeper concerns over fiscal discipline and the credibility of the Budget:

> “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.”

The turmoil capped a volatile trading session as investors reassessed the UK’s fiscal outlook amid rising borrowing costs and a weakening pound.

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