0918 GMT - U.K. political tensions could slow down the advancement made in reducing government borrowing, Berenberg economists say in a note. The U.K. Debt Management Office last week announced a 5.9 billion pounds ($7.99 billion) lower net financing requirement forecast in the fiscal year 2027 of 251.2 billion pounds, compared to the earlier forecast in March. "A likely challenge to Prime Minister Starmer's leadership of the ruling Labour party risks delaying further progress" in reducing public debt, the economists say. Markets worry that a potential replacement for Keir Starmer could lead to higher government spending and looser fiscal rules. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
April 27, 2026 05:18 ET (09:18 GMT)
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