Prime minister addresses bond market turmoil ahead of October budget

Prime Minister Andy Burnham spoke in Parliament on Wednesday to calm worried financial markets. Government bond prices have been falling for several days, which makes borrowing more expensive for the government. This is a serious problem because Burnham's government is planning its first budget for October. Rising borrowing costs mean Chancellor John Healey will have less money to spend on public services. At Prime Minister's Questions, Burnham promised that the government would manage public finances carefully and responsibly. The October budget is very important for the government, as it will set spending plans for the coming period. If borrowing costs stay high, the government may not be able to afford everything it had planned.