Greater Manchester Mayor Andy Burnham has committed to sticking to the government's existing borrowing limits, known as its fiscal rules, in an effort to calm financial markets. The move comes after recent weeks in which Burnham had suggested the rules might be changed, causing some market unease.
According to a report by BBC News, Burnham's statement was made in a speech to business leaders, where he emphasized the importance of fiscal discipline for economic stability. The markets appeared to react positively, with bond yields stabilizing after the announcement.
Burnham's commitment aligns with the current government's fiscal framework, which sets limits on public sector net borrowing. The mayor's previous comments had sparked speculation about potential deviations from these rules, leading to volatility in UK government bonds.
The clarification from Burnham is seen as a step to reassure investors and maintain confidence in the region's financial management. No further details on specific rule changes were provided.
