Borrowing costs jump and pound falls on Chancellor's tears
Published: 7/2/2025

Chancellor Rachel Reeves's tearful appearance in Parliament led to a surge in borrowing costs and a drop in the pound's value. Speculation about her potential resignation caused market volatility, with concerns over a £5bn gap in financial plans after the government's U-turn on welfare reforms. Despite signals of support from the Prime Minister and government, uncertainty remains about future economic policies and budget implications.