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The pound has plummeted against the dollar as the cost of government borrowing has hit a 27-year high and the Shadow Chancellor Mel Stride fumed this is “another economic disaster from Rachel Reeves.”
The Conservatives have warned that the financial markets have issued “a clear vote of no confidence” the day after Sir Keir Starmer reshuffled his team.
Starmer announced this week the government has entered a “second phase” and have a focus on growing the economy.
The government has been delivered with a scathing verdict as the value of the pound fell by 101% against the dollar and government borrowing soared to a 27-year high.
Shadow Chancellor Mel Stride said on Tuesday, “With UK borrowing costs hitting a 27-year high, and the pound suffering its worst day in nearly three months, it’s yet another economic disaster from Rachel Reeves – and a clear vote of no confidence in Labour from the markets.
“This is what happens when you have a government with next to no business experience.
“Labour promised stability but they’ve doubled inflation, delivered soaring debt and destroyed business confidence.
“With more tax rises on the horizon, the economy is now in a precarious position.”
Neil Wilson, UK investor strategist at Saxo Markets, said, “The market move was a sign that investors do not have confidence the Treasury will stick to its strict borrowing rules.
“30-year yields at their highest in almost three decades is not a good look for the Labour government and underscores that there is little fiscal or economic credibility left.”
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