Pound falls to 37-year low against dollar as mini-budget puts markets in spin

FTSE 100 drops more than 2% to trade below 7,000 for first time since early March

Kwasi Kwarteng's tax-cutting mini-budget has sent financial markets into a tailspin, with UK government borrowing costs soaring and the pound slumping to a 37-year low against the dollar.

Issuing a punishing verdict on the chancellor's dash for growth", traders in the City of London sent sterling tumbling on Friday amid a broad-based sell-off in response to the massive rise in public borrowing required to finance his plans.