The Chancellor was accused of having “fled to China” rather than explain how she will help the UK’s “flatlining” economy after borrowing costs hit a 27-year high and the Pound fell to a year low against the Dollar, sparking warnings of higher mortgages.

The pound has fallen to its lowest level in over a year, while UK borrowing costs hit their highest for 16 years. Economists have warned that the rising costs could lead to further tax increases or spending cuts as the government tries to meet its self-imposed rule not to borrow to fund day-to-day spending.

The Pound has tumbled to its lowest level against the US dollar for over a year as government borrowing costs surged sparking warnings that mortgage rates will also rise. Sterling weakened again on Thursday morning amid a deepening rout in UK government bonds,