Berenberg: The UK may maintain fiscal discipline in the event of potential changes in leadership.

Economists at Berenberg stated in a report that if there is a change in leadership, financial markets may put pressure on the UK to maintain fiscal discipline. These economists mentioned that if the ruling party Labour performs poorly in the local elections on May 1st, party members may choose to replace Prime Minister Keir Starmer. They noted that a change in leadership may facilitate increased government borrowing, but financial markets may restrict such actions. Signs of relaxed fiscal discipline could lead to sell-offs of UK government bonds, which would not be favorable for the UK. The economists stated, "Financial markets will keep any successor in check." Data from Tradeweb showed that the yield on 10-year UK government bonds rose by 4 basis points to 4.485%.