Rachel Reeves risks entering an economic "doom loop" if she continues to cut spending, a former Bank of England chief economist has warned.

Rachel Reeves was warned the economy could enter a “doomed loop” after borrowing surged to a new high in a fresh blow to the Chancellor. The Treasury borrowed £17.8 billion in December, the highest level for four years and £10 billion more than the same month last year.

Rachel Reeves promised to restore economic stability, but the outcome of her various actions has been to increase uncertainty, says Paul Ormerod Daniel Ellsberg, who died in 2023 in his 90s, was a true Renaissance Man.

It comes as Rachel Reeves insisted she would not resign despite a wave of criticism over decisions such as the National Insurance increase, inheritance tax on family farms and winter fuel payment means-testing, as well as poor economic growth with the economy growing by just 0.1% in November.

British finance minister Rachel Reeves said on Monday she would meet representatives from key financial services sectors, such as banking and insurance, over the coming months to formulate a new growth and competitiveness strategy.

UNDER-pressure Rachel Reeves was given a glimmer of hope as inflation fell — raising interest rate cut hopes. The Chancellor saw inflation sink 0.1 per cent to 2.5 per cent in December, the drop

Chancellor Rachel Reeves faces "difficult decisions" if she wants to meet her self-imposed financial rules after borrowing costs hit their highest level for 16 years, the former deputy governor of the Bank of England has warned.

Spare a thought for the Chancellor. She’s going through a tough time. The headlines at the moment are brutal. While Number 10 has now backed her to remain as Chancellor for the rest of the parliament,

The disappointing retail data adds to the dim economic picture in the U.K. and to the challenges facing Finance Minister Rachel Reeves.

Truss herself accused the Chancellor of pushing Britain “to the brink of an economic crisis”. Shadow Chancellor Mel Stride said Reeves’ visit to China is “tone deaf” and she should be “reassuring” markets in the UK following turbulence on the gilt markets.

Falling inflation and borrowing costs are good news for the Chancellor but the Budget watchdog will not make a call on market conditions until next month

Chancellor Rachel Reeves faces "difficult decisions" if ... the former deputy governor of the Bank of England has warned. Reeves has pledged not to borrow to fund day-to-day spending and to ...