If one looks at the recent headlines in finance papers like the FT heading into the local elections on 7 May, one would think that it is back to 2019 again. Finance bros are not happy about the Green Party.
There will be a great effort to blame the impending left victory in local elections for Britain’s 10-year gilt yield, which is the highest since the 2008 financial crash, due to the US-led war on Iran.
FT’s latest is:
Investors warn loosening fiscal rules or change of prime minister could add to pressure on UK borrowing costs
Gilt traders warn of ‘swing to the left’ as Labour faces electoral losses https://t.co/4DVLs0ZTm4
— Financial Times (@FT) May 4, 2026
Today’s articles on gilt traders by the FT are emphasising the nervousness of the bond traders, just like they did in the 2019 General Election, when Corbyn was leading the Labour Party.
The FT’s article from Monday said:
A strong performance by the Green Party, which has promised a huge increase in tax and public spending, would be “disastrous” for the UK bond market, said Lloyd Harris, head of fixed income at Premier Miton, as it could push Labour further to the left to counteract the populist threat
Recently, the FT acknowledged that bank executives themselves admit Starmer’s government gave them an “astonishing escape” by not raising taxes on the sector, something any other chancellor other than Rachel Reeves would have done.
Banks brace for tax raid if Starmer is ousted https://t.co/7DluamrQg3
— Financial Times (@FT) April 25, 2026
Green Party criticism shows similarities to 2019
This kind of panicked reporting is also what we saw when Corbyn was Labour leader in 2019.
How investors weigh up Corbyn and no-deal Brexit https://t.co/QBpTsyOXnQ
— Financial Times (@FT) October 15, 2019
In 2019, the FT quoted a bond trader saying that Labour’s spending plans under Corbyn were making bond investors “more nervous”.
The narrative of the flight of the rich is back on. In 2019, apparently, the super-rich were preparing to leave the UK ‘within minutes’ if Labour won the election. Now, it is Green’s wealth tax plans that will drive them away.
Green Party’s wealth tax plan would backfire and drive the rich abroad, IFS warnshttps://t.co/xyCh11U4oA
— GB News (@GBNEWS) April 28, 2026
Even GB News, despite its alarmist headlines about the flight of the rich, admits that despite the warning, polling by YouGov found that three-quarters of the public support the introduction of a wealth tax.
According to the Guardian’s reporting, Zack Polanski has been careful not to promise billions in unfunded spending.
For instance, on energy bills, the Guardian notes that he promised to cushion every family — even the wealthiest — against soaring utility bills, paid for through a “loophole-free” version of the windfall tax on energy companies and capital gains tax rises.
The bond market isn’t some omnipotent god. It’s traders buying and selling government debt for profit. The Bank of England owns about 30% of UK gilts. It created £895 billion electronically during QE because it was politically convenient.
So when the FT quotes a bond trader warning that a Green surge would be “disastrous”, ask yourself: disastrous for whom?
Featured image via the Canary
By The Canary
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