The Office for Budget Responsibility warns that Britain’s mounting debt poses a daunting challenge to public finances, fuelling worries over economic resilience and tugging sterling lower while gilt yields climb amid calls to consider higher taxes.

Trump has announced a three-week reprieve on implementing reciprocal trade tariffs, deferring new levies until August and causing ongoing market apprehension, with Japan and South Korea among nations facing potential 25% rates.

China is redirecting shipments through south-east Asia to bypass higher duties in the US, prompting a surge in trade with the ASEAN bloc and renewed caution among global exporters.

Major investment firms seized the opportunity to buy up government bonds during a brief market dip sparked by speculation over the Chancellor’s position, while the Opposition leader reinforced backing for her to steady the political and economic landscape.