Andy Burnham used his debut appearance at Prime Minister's Questions on Wednesday to insist that his government would be "grounded in fiscal responsibility," as he faced Conservative leader Kemi Badenoch across the dispatch box for the first time since taking office. The exchange came against an uneasy backdrop in the gilt market, where UK borrowing costs have climbed sharply in recent sessions, sharpening the political stakes of the new administration's economic messaging.

Badenoch opened by pressing the Prime Minister on the surge in 10-year gilt yields, which have risen by roughly 30 basis points since the start of the month according to trading data. She argued that the increase reflected investor anxiety over the government's fiscal plans and asked what specific measures the Chancellor would announce to reassure markets. Burnham replied that "no government can be grounded in anything other than fiscal responsibility," and pointed to upcoming fiscal announcements as evidence of the administration's commitment to budgetary discipline.

Market reaction has been the dominant backdrop to the new government's early days. Analysts at several major dealers have attributed the rise in yields to a combination of global rate movements and concern over the scale of gilt issuance required to fund the administration's policy agenda. The Office for Budget Responsibility is expected to publish updated forecasts later this month, which economists say will be the first significant test of whether the government's fiscal projections align with market expectations.

Inside the chamber, the exchange also set the tone for what is likely to be a more combative relationship between Downing Street and the opposition front bench. Burnham, who served as Mayor of Greater Manchester before entering Downing Street, was repeatedly challenged on whether his administration's promises on growth and public investment were compatible with its stated fiscal anchors. He argued that "long-term growth and fiscal responsibility are two sides of the same coin," and accused the previous government of having "mortgaged the future" through unfunded commitments.

Opposition MPs seized on the market moves to demand clarity on tax and spending decisions expected in the coming weeks. The Treasury has so far declined to comment on the gilt sell-off, citing the convention that ministers do not remark on day-to-day market activity. With a fiscal event now widely anticipated before the parliamentary recess, Wednesday's PMQs offered an early indication that economic stewardship — rather than social policy or foreign affairs — will define the new administration's first major political battle.