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 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.