In a nutshell, the argument ran that resolution needed to be shown on bringing spending down so that the market rate charged on Government debt did not rise, or could even come down.

The falling interest rate on Government gilts seen since June has been claimed by Chancellor George Osborne as vindication for the policy.

But perhaps unsurprisingly, it has not been seen that way by everyone.

The Claim

Take this exchange from Treasury Questions earlier in the week between Mr Osborne and newly-elected Labour MP Rachel Reeves, over the issue of the impact of the Budget on market confidence.

Taking the 10 year gilt yields as a marker of the rates charge on Government debt, the graph shows that the rate has fallen since the Emergency Budget – but was also falling before June.

On a similar measure, to use George Osborne’s comparison, the rate in Spain, though actually higher than the rate for the UK at the time of the Budget - has changed little since June, leaving them roughly 1 per cent above the UK rates.

So what does this tell about the veracity or otherwise of the claims picked out above? Can the continued fall in the rates be attributed to the measures taken in the June Budget?

For a bit of expert insight, we consulted the ever-helpful folks at Capital Economics, who provided us with the following graph.

In the view of Vicky Redwood, consumer and debt specialist at Capital, there is no way of proving with any certainty the effect on market rates of the Budget, but there was some evidence to show confidence in the UK improving after its announcement.

She told us: "Gilt yields have largely just tracked OIS rates down since the budget – and OIS rates are a measure of market interest rate expectations. In other words, gilt yields have fallen primarily because markets have revised down their expectations of where the Bank of England will set official interest rates.

"That said, the gap between the two has narrowed a little, which could be put down to the Budget measures - and the risk is that, without the Budget, that gap might have widened."

While a variety of factors can influence the gap between the OIS and the gilt yield rate, at present we were told, investors confidence in the UK was a strong determinant of the width of this gap.

Conclusion

Ultimately the graphs featured here lend credibility to both arguments set out above. Rates on Government debt were falling before the Budget, and have continued to fall more than Spain. Furthermore there is some evidence that can be interpreted as improving market confidence in the wake of the Budget.

But of course beyond this, applying simple cause and effect interpretations to the workings of international markets is going be a tough fit. Likewise it is debateable whether Spain alone serves as the best point of comparison for UK, nor is it possible to say what the position would have been without the June Budget.