The Chancellor has been urged to avoid unexpected policy changes in the upcoming Budget and prioritize stabilizing the bond market amid recent financial volatility. Mark Allan, chief executive of FTSE 100 property company Landsec, emphasized the need for predictability to support business confidence and investment.

Allan specifically called on John Healey to steer clear of the steep tax increases introduced under his predecessor, Rachel Reeves. Among those earlier measures were a significant rise in employer national insurance contributions and an attempt to reform business rates, both of which were widely seen as detrimental to companies’ ability to hire and grow.

“The past two Budgets have been characterised from a business point of view by nasty surprises – nasty surprises that have made it difficult to employ people,” Allan told the BBC. He highlighted that clear communication and policy stability are crucial, particularly given current market conditions.

The UK is experiencing pressure in its bond markets, with a recent sell-off pushing long-term borrowing costs to their highest levels since 1998. This surge in yields increases the government’s cost of financing its debt and can have broader implications for economic growth.

Allan said calming investor nerves should be a central focus of the government’s economic strategy moving forward. By providing assurances and avoiding abrupt policy shifts, the Chancellor can help create an environment conducive to business investment and job creation during a period of financial uncertainty.