Britain's fiscal credibility story just hit a bump. The Chancellor's recent efforts to reassure markets about the country's financial stability are already facing pushback—and that narrow margin for policy maneuvering keeps getting tighter. With fiscal constraints closing in fast, policymakers are finding themselves boxed in, unable to flex spending or cut taxes the way they might want. This kind of structural tightness in government finances ripples through markets, affecting everything from currency valuations to risk appetite across asset classes.