MORE austerity is on the agenda as Chancellor Rachel Reeves prepares a new clampdown on public spending in her autumn Budget.

In a move that risks sparking new divisions and struggle within the labour movement, Ms Reeves is set to prioritise reassuring global money markets over repairing the damage done by the Tories.

She is reported to have been spooked by figures showing public sector borrowing at £3.1 billion in July, £1.8bn more than a year previously and above most expectations.