Analyst: The UK's fiscal outlook is concerning, and the limited space for policy adjustment has raised worries among longer.

Jin10 reported on July 2 that Danni Hewson, head of financial analysis at AJ Bell, stated that the issue is that UK Chancellor of the Exchequer Reeves finds herself in a very difficult situation after a series of policy shifts, meaning that the previously expected savings from winter fuel subsidies and changes to disability benefits are now completely unattainable. This leaves her facing another significant fiscal gap, and the current question is how she will respond. Of course, there is much speculation in the market that she may have to raise taxes, but if she does so after previously stating she would not raise taxes, it will pose an extremely tricky political challenge for the Labour government. Everything happening in Parliament today has completely unsettled investor sentiment.