Liz Truss and Kwasi Kwarteng are like “two gamblers in a casino chasing a losing run” as the value of the pound plunged to record lows, according to Rachel Reeves.
Labour’s shadow chancellor said the money markets had delivered a damning verdict on Kwarteng’s mini-budget, which handed huge tax cuts to the rich funded by £70 billion more of government borrowing.
In Asia overnight, the pound fell to its lowest point ever against the dollar - dropping to just over $1.03, before rallying slightly to $1.06.
That means that UK imports from the US, as well as the cost of oil, will go up, leading to higher prices in the shops.
Just as worryingly, the cost of government borrowing has also continued to go up - increasing speculation that the Bank of England could be forced to introduce an emergency hike in interest rates.
The chancellor hinted at further tax cuts to come over the weekend, suggesting the government is preparing to double down on its controversial economic policies.
Reeves, who will deliver her keynote speech to Labour’s annual conference later today, 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.”
Reeves’s attack came after Keir Starmer claimed handing tax cuts to the rich were a “piss take” by Truss and Kwarteng.
