UK economy: slump in pound piles pressure on Labour

The cost of government borrowing rose again this morning and the pound fell – with financial markets still worried by the country’s faltering economy and weak public finances.

The Chief Secretary to the Treasury, Darren Jones, tried to calm nerves, saying the government was determined to keep the national debt under control.

The Chancellor herself is on a flight to China, in search of new trade and investment opportunities to kick start the economy.