Sterling has fallen below $1.11 for the first time in 37-years as the markets react to Kwasi Kwarteng's emergency budget.

The Chancellor announced around £50bn worth of tax cuts and said the government would need borrow an extra £72bn to fund the government's two schemes to support households and businesses with energy costs.

The pound was already down 15 per cent against the dollar over the last six months.

The abolishing of the additional rate of tax means the Treasury will lose out on more than £2bn.

Plans to cancel the planned rise in corporation tax from 19% to 25% will reduce the Treasury’s tax take by more than £12bn next year, rising to £19 billion by 2026.

Earlier this week, the Office for National Statistics revealed that borrowing was much higher than expected in August.

The Government borrowed £11.8 billion last month as it dealt with soaring interest costs from its loans.

Many of these loans are tied to inflation.

But the Government now says that by supporting households it will reduce inflation by around five percentage points.

This will, in turn, make it cheaper for it to borrow