Labour’s fiscal rules may limit the chancellor’s ability to act, but waiting it out may be the best option

The UK government has come under pressure from a bond market sell-off and the tumbling pound, heaping pressure on the chancellor, Rachel Reeves, to reassure investors about Britain’s economic and financial position.

After a challenging first six months in power for the government, the chancellor’s options have been limited by Labour’s political promises. There are a range of measures, of varying severity, the Treasury and the Bank of England could still take, depending on how market conditions unfold.