A cabinet minister has insisted ordinary people “shouldn’t be worried” about the state of the economy despite turmoil on the money markets and the falling value of the pound.Government borrowing costs have hit their highest level in years, meaning ministers have less money to spend on frontline services and piling pressure on Reeves to either put up taxes again or slash public spending.
“We are still on track to be the fastest growing economy, according to the OECD, in Europe, and the chancellor and chief secretary to the Treasury have been absolutely clear that our fiscal rules are non-negotiable. We’re not going to borrow for day-to-day spending.”