Sterling, bonds and share values all fell sharply in the wake of Kwasi Kwarteng's mini-budget
4:45The growth plan outlined by the chancellor to lift the UK from the depths of the cost of living crisis and back to prosperity has been met with horror on financial markets, with the pound taking a particular hammering late in the day.The pound - already on its knees this month because of a strong dollar - slid below $1.09 for the first time in 37 years.
That was after US bank Citi declared, on Friday afternoon, that the currency was facing the prospect of a confidence crisis. It speculated that it could eventually hit parity with the dollar for the first time in history, but added that it expected sterling to settle within the $1.05-$1.10 range.The chancellor revealed the biggest tax cuts for 50 years as part of the new economic agenda - a package that will be paid for through a huge leap in government borrowing.
The plans, which include the previously announced energy bill aid for households and businesses, raised the Treasury's debt issuance plans for the current financial year alone by £72.4bn to £234.1bn. Other measures included scrapping the top 45% rate of income tax and taking 1p off the basic rate from April.
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