Shadow chancellor Sir Mel Stride said taxpayers face a 'Burnham premium' as markets push up government borrowing costs because of concerns that he will drag Labour further to the Left.

The pound tumbled and the cost of Government debts soared on Friday, with economists predicting the pressure will continue throughout a likely Labour leadership contest.

Kemi Badenoch has warned that Andy Burnham would saddle the UK with a "Burnham premium" on mortgages and borrowing costs