Pound falls to all-time low against US dollar amid fears over UK tax cut plans

The video discusses the decline of the Footsie 250 due to concerns about economic confidence affecting consumer and business spending. It highlights the potential impact of the Bank of England raising interest rates, which could lead to higher borrowing costs and reduced spending. Despite some tax cuts, the increased interest rates may result in financial strain for both consumers and businesses in the future.

What impact does borrowing money have on companies and consumers as discussed in the text?

In what ways are consumers expected to feel squeezed in the future?