Pound Falls to Lowest Level in Months Amid Energy Price Worries
The British pound has fallen to its lowest level in months against both the euro and dollar.
Elevated energy prices and global borrowing costs are concerns for investors, but it's the domestic agenda where risks are building.
Ministers are drawing up plans for targeted help with energy bills for poorer households in next month's budget, a move that would require corresponding tax rises to keep the fiscal balance unchanged.
Pound Sterling Live has warned previously that giving energy bill support would be a temptation for Prime Minister Burnham and Chancellor Healey, who would need to find funds elsewhere in the budget to offset the costs.
The average gas and electricity bill is set to rise to over £2,000 a year in January, taking them to levels last seen in 2023.