The financial markets reacted negatively to Rachel Reeves's budget, with government borrowing costs rising sharply and the pound falling, raising concerns about economic instability.
Government borrowing costs surged on the announcement of Reeves’s tax-raising budget, indicating potential challenges for the public services and stability of the economy.
Analysts noted that while Reeves's budget triggered market jitters similar to Liz Truss's mini-budget, the fallout of this budget is significantly less severe.
Concerns have arisen about the high short-term borrowing set out in Reeves's budget, which threatens to hinder potential interest rate cuts by the Bank of England.
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