A man has been given a 13-month prison sentence for stealing Banksy’s famous Girl With Balloon print from a London gallery.

Larry Fraser, 49, of Beckton, east London, was sentenced on Friday after pleading guilty to one count of non-residential burglary at Kingston Crown Court on 9 October.

The print, one of the street artist‘s most famous, was stolen from a gallery in New Cavendish Street in London at around 11pm on 8 September last year.

Fraser used a hammer to smash his way through a glass entrance door at the Grove Gallery before stealing the artwork, which was valued at £270,000.

He concealed his identity with a mask, hooded jacket and gloves, but the Metropolitan Police’s Flying Squad was able to identify him and track him to a location streets away.

He was also caught on CCTV loading the artwork into a van before fleeing the scene.

A second man, 54-year-old James Love, was accused of being the getaway driver in the burglary, but cleared of stealing the print.

Fraser was arrested at his home address on 10 September, within 48 hours of the burglary, and charged the next day.

Officers were able to recover the artwork after executing a warrant on the Isle of Dogs. It has now been returned to the gallery.

Fraser pleaded to the court that he was struggling with a historic drug debt and agreed to steal the work “under a degree of pressure and fear”.

He said he did not know what he would be stealing, nor its value, until the day of the offence.

Jeffrey Israel, defending, said Fraser lived with his mother as her principal carer, and had only managed to “break his cycle of drug addiction” after his last prison sentence.

He added that it “would take a bold advocate” to suggest that the value of the print had increased by the burglary, but insisted “that is probably the reality”.

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Judge Anne Brown was unmoved, however, and said the offence was “simply too serious” for a suspended sentence.

“This is a brazen and serious non-domestic burglary,” she said.

“Whilst you did not know the precise value of the print, you obviously understood it to be very valuable.”

She added: “Whilst I am sure there was a high degree of planning, this was not your plan.”

However, Fraser may be eligible for immediate release due to time spent on electronic curfew.

Detective Chief Inspector Scott Mather, who led the Met’s investigation, said: “Banksy’s Girl With Balloon is known across the world – and we reacted immediately to not just bring Fraser to justice but also reunite the artwork with the gallery.

“The speed at which this took place is a testament to the tireless work of the flying squad officers – in total it took just four days for normality to be restored.”

The 2004 artwork was part of a £1.5m collection of 13 Banksy pieces at the gallery.

Gallery manager, Lindor Mehmetaj, said it was “remarkable” for the piece to have been recovered after the theft.

The 29-year-old said: “I was completely, completely shocked, but in a very, very positive way when the Flying Squad showed me the actual artwork.

“It’s very hard to put into words, the weight that comes off your shoulders.”

Back in June, it was the U-turn on welfare that raised eyebrows. Now it’s a perceived volte-face on tax.

After weeks of suggestions that income tax may have to rise in the forthcoming budget, government sources have confirmed that Chancellor Rachel Reeves will do no such thing.

The government is flip-flopping in a febrile environment. Markets are sensitive to levels of government debt, which climbed by 17.9% between 2019 and 2024.

In the context of an ageing population, slow growth and comparatively high inflation, there are concerns that UK debt is on an unsustainable path. Markets want consolidation – for the chancellor to get a grip on tax and spending.

Ms Reeves, with her insistence on iron-clad fiscal rules, promised discipline. But flip-flopping doesn’t look like discipline. Markets are letting their thoughts be known – and their thoughts matter because the government borrows from them.

Government bond yields, the interest rate demanded on UK debt, jumped amid fears that the government is not prepared to face down opposition from its own backbenchers, from political opponents or the public.

The 30-year gilt was up 16 basis points after its worst day since July, when the chancellor was seen crying in the Commons. The 10-year gilt was up 13 points.

Borrowing costs are already costing the country more than £100bn a year – about 10% of total spending. The more money the government is spending on interest, the less flexibility it has to spend more in other areas, like schools or hospitals.

It appears that Ms Reeves has changed tack because official forecasts from the Office for Budget Responsibility (OBR), whose forecasts underpin the budget, show the fiscal black hole is closer to £20bn, rather than the £30bn first feared. It means she can take less radical steps to raise money.

Markets are pleased that the chancellor is sticking to her rules, but they are viewing this move with scepticism.

Many view the OBR forecasts as overly optimistic. These are smaller tax rises to tackle a smaller problem on paper, but is what’s written on that paper credible?

Andrew Goodwin, of Oxford Economics, said: “If investors suspect the government is leaning on convenient assumptions, they may assume more trouble ahead – and yields could rise further.”

Then there’s the speculation over which taxes could rise. Markets have a clear preference towards income tax because, unlike the increase in national insurance contributions on businesses in the last budget, it’s not inflationary.

And alternative sources, such as tweaks to stamp duty or EV taxes, are less dependable revenue raisers. “Avoiding the politically sensitive income tax lever implies less willingness to tackle the structural deficit later,” said Gordon Shannon, of TwentyFour Asset Management.

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Traders are eyeing the long-term trajectory of the UK, and they are bristling at short-term fixes and tweaks that don’t address the fundamental fiscal position.

There are those in policy who are also frustrated at the approach, which has seen the government pick and drop policies to meet fiscal rules by fine margin.

It is difficult to find any political vision in it all.

What the hell’s just happened? 

On Thursday night I was told that Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer were now not going to raise income tax, having had anonymous briefings for weeks that a manifesto-breaking tax rise was coming, culminating in the speech in Downing Street by the chancellor last week alluding to that.

Politics live: U-turn on budget income tax rise triggers ‘not normal’ market volatility

I had also heard the prime minister was going to make a speech next week to the same effect.

The U-turn – first broken in the Financial Times – was not something the government wanted to leak, and there is anger in Downing Street.

I was told late last night by a source that the decision had been taken to back off income tax rises.

There is obviously some consternation, to say the least, that ministers, the party, the public have been marched up the hill, only to be marched back down again. It all adds to a sense of chaos and a government out of control. So what on earth is going on?

Read more: How No 10 plunged itself into crisis

Let’s first do the economics of it. I was told this morning by Treasury sources that the fiscal forecasts from the Office of Budget Responsibility are stronger than expected.

There had been expectations of a £30bn-£40bn black hole in the public finances.

But I’m told today that black hole is actually closer to £20bn: the chancellor also wants headroom of perhaps up to £15bn, but I’m told the change in forecasts has changed the calculation. I’m told wage growth has been stronger which has helped tax receipts and improved forecasts.

So, where does that leave the government? Treasury figures tell me that the change in forecasts mean the manifesto-busting income tax hike is now not necessary.

I don’t need to spell out the jeopardy for such a move: Rachel Reeves was poised to be the first chancellor in 50 years to raise the basic rate of income tax and break the core manifesto pledge that Labour made to voters last year.

It doesn’t mean taxes are not going up. The government is set to freeze tax thresholds for another two years from 2028. That will raise around £8bn as millions of workers are dragged into higher tax bands and end up paying more tax.

There will also be tax raising around pensions and salary sacrifice schemes and on electric vehicles, as well as other measures, as the chancellor casts around for £20bn.

But what about the politics? Well, one government figure today insists that the decision to drop the income tax plan is nothing to do with the self-inflicted leadership crisis at No 10 after anonymous briefings designed to see off any potential post-budget coup against the prime minister spectacularly backfired. The changed forecasts, I’m told, came in last week.

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But of course there’s tonnes of politics in this. The talk of higher wage growth perhaps offsetting some of the productivity downgrades was being flagged a couple of weeks back, before the chancellor made her speech.

It’s extremely unusual for a chancellor to pitch-roll their budget. But Reeves did it for a reason.

That was laying the ground for a massive budget that would bring manifesto-breaking tax rises.

She told us of the difficult environment, ruled out more borrowing or spending cuts before telling us “everyone must play their part”. She repeatedly refused to stick to manifesto promises on tax. It doesn’t get much more stark than that.

That the government has U-turned on that decision is about far more than just the fiscal framework.

Read more: What taxes could go up now?

With trust so low in the government, there were serious worries – and warnings – from the party that such a big manifesto break might be something from which the PM and the chancellor wouldn’t recover.

One senior party figure that thinks there could be a leadership challenge after the May elections told me this week that manifesto-breaking tax rises would only make that more likely because Labour would “need a clean skin” to try and rebuild with the public if Starmer broke his promises in that way.

Read more: Is Starmer ‘in office but not in power’?

Lucy Powell, the deputy Labour leader, fired a warning shot last week when she said the party should stick to the manifesto and not raise tax: “We should be following through on our manifesto, of course. There’s no question about that,” she told Matt Chorley on BBC Radio 5 Live.

“Trust in politics is a key part of that because if we’re to take the country with us then they’ve got to trust us and that’s really important too.”

The party will no doubt feel relief today that the chancellor is not going to break the manifesto.

It would have only made things a whole lot worse for a government that is in real trouble.

But the shambles of this week is staggering. From the self-inflicted leadership crisis to leaks over a massive budget U-turn, it all lends to the sense that this is a No 10 out of control, lurching from one mess to another. Strap in.