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.

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.

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

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.

“Rachel Reeves is thinking the right way but she’s in a difficult position,” said a senior UK bank executive in Davos . “Labour in the UK have made a lot of good decisions but it is very hard for them and the [bond market] challenges of last week reinforce that issue.”

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

RACHEL Reeves has vowed to “make the UK better off” on her visit to China amid fury over a major debt crisis and a plummeting economy at home. The under-siege Chancellor met Chinese

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,

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.

Deputy governor Sam Woods told Keir Starmer that delivering economic growth and 'encouraging responsible risk-taking', was not its main focus.

British finance minister Rachel Reeves told Reuters today that she will announce changes if necessary in March to meet her fiscal rules, but added that it was important not to "jump the gun" with two months still to go.

Rachel Reeves may be forced to hike taxes again this year if she is found to have broken her self-imposed fiscal rule.