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There was a small piece of good news for Rachel Reeves in the latest inflation numbers, which showed the consumer price index steady at 3.8 per cent, lower than the four per cent expected by the Bank of England (BoE) and the financial markets.

The news pushed the Government’s cost of borrowing down slightly , with the 10-year gilt yield falling from over 4.5 per cent earlier this week to 4.4 per cent. But there, unfortunately, the good news ends. Both inflation and government bond yields remain the highest in the G7 nations, and the Chancellor will still have to find some £25bn in higher taxe

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