British prime minister Keir Starmer and chancellor Rachel Reeves speak with members of staff while visiting University Hospital Coventry and Warwickshire. Photo: Darren Staples/PA Wire
The pound sterling fell on Thursday, set for its worst two-day loss against the euro in two years, a day after new British finance minister Rachel Reeves announced a tax-and-spend budget that investors worried would reignite inflation and weigh on growth.
Sterling was heading for a two-day loss of 0.7pc against the euro, the largest since September 2022, when then-prime minister Liz Truss unleashed turmoil on UK financial markets with budget plans for billions of pounds in unfunded tax cuts.
