Rachel Reeves says she wants growth to be 'stronger and faster' after delivering her first budget as Chancellor.
Rachel Reeves and her senior Treasury ministers have been forced to go on the offensive for a second day following the Budget amid market jitters and anger among voters.
Markets remained spooked by the 'maxi-Budget' today, with the yield on 10-year gilts spiking in early trading, though still below yesterday's high. While sterling recovered slightly in early trading against the dollar it remains below its pre-Budget position. Chief Secretary to the Treasury Darren Jones told Sky News that 'markets always respond to budgets in the normal way', but added: 'I think we've all got PTSD from Liz Truss.'
Traders dumped UK bonds – known as gilts – in a sell-off that drew unwelcome comparisons with Liz Truss and Kwasi Kwarteng's disastrous mini-Budget two years ago. Asked if she was worried about the market response, Ms Reeves said: 'Markets will move on any given day, but we have now put our public finances on a firm footing with robust fiscal rules.'
Bosses said they will be forced to axe services, lay off staff or even shut down as a result of Labour's tax bombshell. Traders are now betting that there will be just one more cut this year – expected to take place next week – but that a pre-Christmas December cut is unlikely.The sheer scale of the extra borrowing required to fulfil the Chancellor's plans is also concerning investors.
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