THE pound has dropped to its lowest level against the US dollar since November 2023. It follows a sharp increase in UK government borrowing costs which hit a 27 year high earlier this week. The

The drop came as UK 10-year borrowing costs surged to their highest level since the 2008 financial crisis when bank borrowing almost ground to a halt. Economists have warned the rising costs could lead to further tax rises or cuts to spending plans as the government tries to meet its self-imposed borrowing target.

The fall in the Pound, rising borrowing costs and warning of higher mortgages are a treble blow to Chancellor Rachel Reeves who has been criticised for her Autumn Budget in which she hiked taxes by £40 billion, borrowing by some £30 billion, to boost public spending by around £70 billion.

The pound has fallen to its lowest level in over a year, as UK borrowing costs surge to their highest in 16 years, fueling concerns over public finances and the economy.

The pound has fallen to its lowest level for nine months after UK government borrowing costs continued to rise. The drop came as UK 10-year borrowing costs surged to their highest level since the 2008 financial crisis when bank borrowing almost ground to a halt.