The UK's new Chancellor will promote a series of fiscal measures, expected to boost the pound.

The UK's new Chancellor of the Exchequer, Reeves, has announced a series of fiscal measures aimed at boosting the British economy. She revealed that her predecessor left a fiscal deficit of £21.9 billion ($28 billion) and immediately announced spending cuts of £5.5 billion. Reeves plans to cut an additional £8.1 billion in the next financial year and will introduce more measures in a full budget announcement on October 30.

In response to recommendations from independent pay-setting bodies, Reeves has decided to give public sector workers pay rises totaling £9.1 billion, a move she says the Conservatives had long ignored. Despite the state of public finances being unsustainable, Reeves is committed to making tough decisions now to ensure further savings.

Britain's economy is currently growing sluggishly, with public sector net debt at a record high since the early 1960s and the tax burden nearing an 80-year high. Reeves has pledged to accept proposals for pay raises above inflation for workers such as teachers and healthcare workers, who have faced strike action under the previous government.

Reeves has canceled several projects, including road building and rail repairs, and will revisit plans to rebuild hospitals. She has set an ambitious target for government departments to cut more than £3 billion from their budgets. Additionally, she plans to stop paying annual heating bills to high-income pensioners, saving around £1.5 billion a year.

Critics argue that the new measures are paving the way for future tax rises. Reeves, however, has commissioned a review of public finances and accused the previous Conservative government of covering up the true picture of government spending. She emphasized her intention to stick to her party's campaign promise not to raise rates of income tax, VAT, or other major taxes, with any tax changes to be announced in the official budget statement in October.

The new government's commitment to fiscal reform is expected to improve the economic situation and boost market confidence, thus supporting the pound. Investors are advised to keep a close eye on these developments.