CHANCELLOR Rachel Reeves is facing market panic just months before the Budget as borrowing costs hit a 27-year high.
Investors cast doubt yesterday over whether she would be able to find up to £50billion to help balance the books.
It comes just a day after Sir Keir Starmer attempted to beef up his No10 operation, bringing in new advisers for more economic heft.
The day of turmoil, making it more costly for the government to borrow from the financial markets, also saw sterling fall sharply against the dollar in its biggest one-day drop since April.
The chaos was repeated across other money markets, with US and European government bonds also being sold off.
Thirty-year bonds in the UK hit 5.72 per cent, the highest since 1998.
It came as Britain sold a record £14billion of new ten-year government bonds, which attracted £140billion of orders from investors.
Ministers are putting renewed focus on boosting the economy amid high borrowing levels, sluggish growth and the highest inflation rate in the G7 — but are dogged by stubborn inflation and high debt.
Shadow Chancellor Sir Mel Stride said this was a “clear vote of no confidence in Labour from the markets”.
He said: “Labour promised stability but they’ve doubled inflation, delivered soaring debt and destroyed business confidence.
“With more tax rises on the horizon, the economy is now in a precarious position.
“Businesses and investors need certainty now, not waiting months until the Budget.”
There was speculation last night that the Budget would be held on November 26 — with the date being the working assumption in No10, HuffPost claims.
A Treasury source said: “We are not commenting on Budget date speculation.”
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