The Chief Secretary to the Treasury has faced online ridicule after celebrating a rise in the pound – before it repeatedly hit a 37-year low.
Chris Philp, Chancellor Kwasi Kwarteng’s second-in-command, seemed thrilled as his boss unveiled his mini-budget.
He tweeted: “Great to see sterling strengthening on back of new UK growth plan.”
But once markets digested the amount of tax cuts worth up to £45 billion a year, the currency reversed.
At its lowest point on Friday afternoon £1 could buy just 1.0896 US dollars – the worst exchange rate for Britain since 1985.
That was a drop of more than 3%, and means that the pound has lost more than 7% of its value against the dollar in just one month.
Twitter was in a forgiving mood.
Appearing later on the BBC, Philp said markets will see that the government has a “credible and responsible” economic plan.
He told BBC Radio 4’s Prime Minister’s programme: “I think when the Chancellor sets out his medium-term fiscal plan, which includes getting debt to GDP down, I think the markets and other people will They will see that we have a credible and responsible plan.”
He also stressed that the government “plans” to grow GDP by 1% over current forecasts each year.
“I am very confident that the target we have set, the additional 1%, will be delivered. We are not expecting, we have plans to do so. “
Philp rejected the idea that the government had abandoned the cautious approach to public finances taken by previous Tory administrations.
Using more than £70 billion of increased borrowing, Kwarteng on Friday drew up a package that included scrapping the top rate of income tax for the highest earners.
He cut stamp duty for home buyers, and cut the basic rate of income tax to 19p in the pound, earlier in the year, as part of tax cuts costing up to £45 billion a year.
Kwarteng said Commons tax cuts were “central to solving the growth puzzle” as he confirmed plans to cap bankers’ bonuses while adding restrictions to the welfare system.