The pound has fallen to an all time low against the dollar following the UK’s biggest tax cuts in 50 years.

The £45bn tax-slashing package saw the market react, seeing the sterling fallen close to $1.03 in early Asia trading before recovering slightly to about $1.07.

Imports of commodities priced in dollars, including oil and gas, will be more costly further exacerbating the fuel crisis Brits are facing.

Brits visiting the US will also find their money does not go as far as before.

Imports costs in general may soar, pushing up inflation which is already at its highest rate for decades further still.

Borrowing costs reached their highest levels since August 2008 on Monday morning, with suggestions the Bank of England may have to enact an emergency interest rate hike to steady the ship.

Both the chancellor Kwasi Kwarteng and Prime Minister Liz Truss defended their programme over the weekend, with the former saying he would like to keep cutting taxes as part of an effort to boost UK economic growth.