The dispute between two senior UK politicians could have ripple effects beyond Westminster, as investors watch UK gilt yields climb to levels not seen in decades, a development that may influence North American bond markets.
Andrew Griffith, newly appointed Conservative shadow chancellor, told reporters he has never shaped the 2022 mini‑budget that precipitated the market turmoil under former prime minister Liz Truss. He said his role at the Treasury was limited to overseeing financial‑services regulation and that the budget had already been finalised before he joined.
Labour's Andy Burnham has repeatedly highlighted Griffith's brief tenure in the Truss administration during recent Commons debates, suggesting he bears responsibility for the surge in gilt yields that forced the prime minister's resignation. Griffith dismissed the accusation as unfounded, calling it "making up stories".
The criticism comes as Kemi Badenoch, the new Conservative finance minister, faces pressure to restore confidence. She appointed Griffith on Monday, hoping his market‑focused stance will calm investors.
Market data show the 10‑year UK gilt yield rose to 5.25%, while the 30‑year reached 5.89%, the highest since 1998. The jump mirrors a similar rise in US Treasury yields the previous day, underscoring the interconnectedness of sovereign‑debt markets.
In an interview with City AM, Griffith warned that the government's ambiguous spending plans and the possibility of further tax hikes have created a "multi‑billion black hole" in public finances, a situation he says erodes business confidence across the economy.
He urged the government to rule out additional tax increases and to advance welfare reform, arguing that uncertainty is the chief driver of the current bond‑market stress.