Shadow chancellor says she's 'very concerned' by fall of pound following the …
The pound has slumped to an all-time low as investors have continued to react to chancellor Kwasi Kwarteng's mini-budget and the historic tax cuts that the Tory government have introduced.
Shadow chancellor Rachel Reeves has accused Kwasi Kwarteng and Liz Truss of recklessly gambling with the UK’s finances. One of the Chancellor’s allies told the Times the drop in the pound’s worth is “City boys playing fast and loose with the economy”.
The Labour MP told Times Radio: “Instead of blaming everybody else, the Chancellor and the Prime Minister, instead of behaving like two gamblers in a casino chasing a losing run, they should be mindful of the reaction not just on the financial markets but also of the public.
“The idea trickle-down economics – making those at the top richer still – will somehow filter through to everybody else has been tried before, it didn’t work then, it won’t work now.
“So, financial markets are unimpressed, the British public are unimpressed and the Chancellor and the Prime Minister need to take note because they’re not gambling with their own money, they’re gambling with all our money, and it’s reckless and it’s irresponsible as well as being grossly unfair.”
Reaction on social media to the UK's tumbling currency has been one of derision and criticism for the Tories and Kwarteng with many calling for the chancellor to already be removed from his position.
\u201cSack Kwasi Kwarteng, immediately. He is dangerous. #PoundSterling\u201d
— Sarah \ud83c\udf39#GTTO (@Sarah \ud83c\udf39#GTTO)
\u201cThis isn\u2019t Bitcoin. It\u2019s the British pound.\n\nThe Tories are recklessly gambling - not with their own money - but all of ours.\u201d
\u201cThe Bank of England will now have to urgently jack up interest rates more than necessary to repair damage of pound/dollar collapse carnage. \nThis will worsen inflation. \nGreat work @trussliz @KwasiKwarteng \ud83d\ude44\u201d
\u201cMedia 2015-2019: "There'll be a run on the pound if Corbyn gets in."\n\nkwasi Kwarteng 2022: "Hold my drink."\n\nThe cost of essentials, LIKE FOOD, that people rely on are about to get even more expensive.\n\nThis government is running our society into the ground. Join a union!\u201d
Sir John Gieve, former deputy governor of the Bank of England, said he would be worried if he was still in the job as sterling falls against the dollar.
He told BBC Radio 4’s Today programme: “I think I would be worried.
“The bank, and indeed the Government, have indicated that they are going to take their next decision in November and publish forecasts and, so on that point, the worry is that they may have to take action a bit sooner than that.”
Additional reporting from PA.
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