Despite facing criticism from abroad and at home, the new UK administration is stubbornly sticking to the budget launched last week.
Treasury Minister Andrew Griffith said the government's proposals were the right plan to grow the UK economy.
This is because all major economies are facing the same issue which is the impact of Russia's war in Ukraine which has driven up energy costs and exacerbated supply issues.
Last week, Prime Minister Liz Truss' administration announced the biggest tax cuts in 50 years and additional stimulus for UK households and businesses.
However, it has not only caused the pound to plummet but has also sparked a range of criticism, including the Labor party calling for the tax cuts to be halted.
In fact, government departments are also asked to find ways to reduce their expenses.
This move also caught the attention of the International Monetary Fund (IMF) who warned that the move is likely to further increase the cost of living.
The fall of the pound and the high jump in UK bond yields have forced the Bank of England (BOE) to intervene to restabilize the market.
On Wednesday, the BOE announced it would temporarily buy government bonds to help restore orderly market conditions.
It is understood that some pension funds hold large amounts of government bonds as they are usually stable investments, but when their value falls it has sparked concern among bondholders leading to massive selling.
