Pound falls to 14-month low as bond sell-off piles pressure on Rachel Reeves
GuardianJAN 3
UK: Pound Falls to Lowest in Over a Year, Borrowing Costs Rise
Above: UK chancellor of the exchequer, during the annual Confederation Of British Industry (CBI) conference in London, UK, on Nov. 25, 2024. Image copyright: Chris Ratcliffe/Bloomberg/Contributor via Getty Images
The Spin
Left narrative
The pound’s fall and rising borrowing costs highlight the challenges of a fragile economy, but Labour’s focus on stability offers a chance for a new direction. By rejecting austerity-driven ideology, Labour can champion investment in jobs, green growth, and public services to rebuild the economy sustainably. While tough choices remain, bold action on fair taxation and strategic spending can restore confidence, ensuring working people benefit from a stronger, fairer future.
Right narrative
Labour’s economic strategy has left the UK vulnerable, with rising interest rates, a weakened Sterling, and surging bond yields signaling investor skepticism. Reeves’s refusal to put the economy over ideology has undermined growth, while her inability to instill market confidence has compounded the crisis. Labour’s cautious, hesitant approach risks dragging the UK into economic free-fall, and despite only six months on the job, it is already time for the Chancellor to go.