The pound has fallen sharply in the wake of Sir Keir Starmer’s economic reshuffle that sidelined Rachel Reeves.
Ms Reeves was defended by Yvette Cooper, the Home Secretary, who insisted the Chancellor had not been “sidelined” despite the appointment of three economic experts.
On Monday, Sir Keir made Darren Jones, who was Ms Reeves’s former deputy, his new Chief Secretary to the Prime Minister.
Baroness Minouche Shafik, a former Bank of England deputy governor, was brought in as his chief economic adviser while Dan York-Smith, who spent two decades in the Treasury, is Sir Keir’s new principal private secretary (PPS).
However, sterling dropped more than 1.2pc against the dollar to less than $1.34 just a day after the sweeping changes, while Britain’s borrowing costs hit their highest level since 1998 amid concerns Ms Reeves will be unable to balance the books.
