Latest Budget: ‘It’s really bad’: Sky News pundits react to pound slump following Labor Budget

Our deputy political editor Sam Coates now he joins Ali Fortescue to discuss the market’s reaction to Chancellor Rachel Reeves’ Budget.

“I think it’s very serious,” says Sam. “There is one thing that everyone seems to agree on, and that is that there has been an adverse reaction to the budget in the markets.”

He adds that this is likely because markets were “surprised” by the scale of the borrowing revealed by the government on Wednesday.

“That in itself is a very, very big deal because that’s what the Labor government went for, to get into power, when Liz Truss did exactly the same thing.

“Now, we’re not talking about the magnitude of Liz Truss at all at this point, and there’s no reason to think she’s going to get there anytime soon.

“But we as a country have to pay more to issue debt because the markets have been surprised.”

Sam adds that stability was a key feature of the Labor manifesto and “suddenly” they are borrowing to spend more.

He says their initial approach is “in the bin and suddenly we have a different one”.

“That surprise is one of the problems.”

Sam adds: “The markets are back to watch the Chancellor.

“It’s huge. They may not act tomorrow, or next week, or next month, but they will continue to control this government in the spring and next November – when the next budget comes.”

He says Ms Reeves got herself “in trouble” by doing too much, too fast.