Reeves warned over 'doom loop'

RACHEL Reeves has been warned the economy could enter a "doom loop" after borrowing surged to a four-year high. The Treasury borrowed £17.8billion in December, the highest for four years and £10billion more than a year earlier.

- By Jonathan Walker Whitehall Editor

It comes after market turmoil sent borrowing costs soaring and raised fears of cuts to public services in June. Ex-Bank of England chief economist Andy Haldane, right, warned a combination of poor growth and lower spending would devastate the economy.

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