Sharron Davies and ex-chief of staff to Rachel Reeves among those to receive peerages

Downing Street has announced the appointment of 34 new peers to the House of Lords, including former Olympic swimmer Sharron Davies, in an effort to address an imbalance favoring the Labour Party. This move is seen as a strategic response to the current political landscape within the House of Lords.

Downing Street has published a list of 34 new political peerages, which includes 25 Labour, five Liberal Democrats, and three Conservatives, highlighting notable appointments such as ex-Olympic swimmer Sharron Davies and Iceland supermarket chief Richard Walker. This announcement comes amid ongoing discussions regarding the government's fiscal policies and recent budget leaks.

Chancellor Rachel Reeves criticized unauthorized budget leaks ahead of her crucial budget announcement, stating that many were inaccurate. She revealed that her decision to reverse the income tax policy was made in partnership with Prime Minister Keir Starmer, emphasizing the collaborative nature of their fiscal strategy.

Chancellor Rachel Reeves has acknowledged that there were 'too many leaks' leading up to last month's budget announcement, which included significant tax increases and welfare reforms aimed at addressing the UK's cost of living crisis.

UK gilt yields have seen a slight decrease compared to other major economies, indicating a potential shift in the bond markets as Chancellor Rachel Reeves navigates fiscal challenges. Despite this drop, the UK still faces a significant premium on borrowing costs, with 10-year government gilt yields rising compared to US Treasury bonds and eurozone counterparts since the last general election.

The Institute for Public Policy Research has indicated that the UK may soon see a reduction in the premium it pays to borrow compared to other major countries, as confidence in the government's fiscal strategy grows following Chancellor Rachel Reeves's autumn budget announcement. This budget aims to increase the UK's financial headroom significantly by 2030.