Government debt costs in Germany, France, Spain and Italy also rose on Monday.

Some experts say investors are reacting to the re-election of former US President Donald Trump and his talk of tariffs.

There is concern this will lead to inflation being more persistent than previously thought, and therefore interest rates will not come down as quickly as expected, both in the US and elsewhere.

Strong US jobs data released on Friday added to expectations that US rates will stay higher for longer, and this has helped to strengthen the value of the dollar against other currencies.

However, Emma Wall, head of platform investors at Hargreaves Lansdown, said the UK’s problems were not purely caused by global issues, arguing that measures announced in the Budget have stoked inflation.

“If you can get inflation under control, you will see interest rates come down in the UK,” she added.

Reeves also faced questions over her self-imposed rules on government debt and spending, which she said on Saturday were “non-negotiable”.

Despite her commitment, some have questioned whether she will be able to achieve the targets without making further spending cuts or tax rises because of how government debt costs have risen.

On Monday, Sir Keir said the government was going to keep to its fiscal rules.

However, he added that the government would be “ruthless” in its decisions for the upcoming spending review.