Sterling faces further weakness and investors were losing confidence in Reeves’ growth-boosting plans, and the currency’s outlook remained negative, also given expectations of at least two BOE rate cuts this year,

Rachel Reeves was warned the economy could enter a “doomed loop” after borrowing surged to a new high in a fresh blow to the Chancellor. The Treasury borrowed £17.8 billion in December, the highest level for four years and £10 billion more than the same month last year.

Britain’s first woman Chancellor delivers the same old fudge, as Labour’s commitment to economic orthodoxy, seen throughout its history, always betrays working people, writes KEITH FLETT

The Chancellor has vowed not to increase taxes again this parliament but experts fear the state of the UK economy might leave her with little option.

Andy Haldane, who was with the Bank for 32 years until 2021, said the Office for Budget Responsibility's (OBR) forecast in March could lead to less investment and spending.

The disappointing retail data adds to the dim economic picture in the U.K. and to the challenges facing Finance Minister Rachel Reeves.

British finance minister Rachel Reeves said on Monday she would meet representatives from key financial services sectors, such as banking and insurance, over the coming months to formulate a new growth and competitiveness strategy.

Chancellor Rachel Reeves faces "difficult decisions" if she wants to meet her self-imposed financial rules after borrowing costs hit their highest level for 16 years, the former deputy governor of the Bank of England has warned.

UNDER-pressure Rachel Reeves was given a glimmer of hope as inflation fell — raising interest rate cut hopes. The Chancellor saw inflation sink 0.1 per cent to 2.5 per cent in December, the drop

Truss herself accused the Chancellor of pushing Britain “to the brink of an economic crisis”. Shadow Chancellor Mel Stride said Reeves’ visit to China is “tone deaf” and she should be “reassuring” markets in the UK following turbulence on the gilt markets.

Rachel Reeves may be forced to hike taxes again this year if she is found to have broken her self-imposed fiscal rule.

Britain's finance minister Rachel Reeves and Prime Minister Keir Starmer are seeking to stem a market slump, but for now what happens next to rising government borrowing costs and the falling pound is largely beyond their control.