The British pound has fallen against the euro amid ongoing political turmoil in the UK, with Prime Minister Keir Starmer’s future in Number 10 Downing Street hanging in the balance.

Borrowing costs also spiked this afternoon, with both the 10-year and 30-year gilts jumping in response to Anas Sarwar calling on the Prime Minister to resign.

The Scottish Labour Leader became the first prominent figure in the party urging Mr Starmer to resign over his handling of Peter Madelson scandal.

Mr Sarwar said: “This isn’t easy and it’s not without pain, as I have a genuine friendship with Keir Starmer. But my first priority and my first loyalty is to my country, Scotland.

“That’s why the distraction needs to end and the leadership in Downing Street has to change. We cannot allow the failures at the heart of Downing Street to mean the failures continue here in Scotland.”

Following his announcement, sterling slipped to around 0.8725 per euro this afternoon, which is its lowest since January 22.

The Government’s 10-year jumped to 4.567 per cent after Mr Sarwar’s speech, with 30-year borrowing costs remaining elevated at 4.389 per cent.

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