The latest Rachel Reeves news, headlines and analysis from The NE Times.
Sterling and government bonds moved only modestly on news of the resignation, with investors focused less on the departing prime minister than on whether his successor sticks to the fiscal rules.
Think tanks caution the Chancellor may need to find tens of billions of pounds in the autumn, as weaker growth and higher debt costs eat into the fiscal headroom built up last year.
The chancellor unveiled her first multi-year settlement, boosting health, defence and nuclear power, but warned that some departments would lose out.
The Chancellor set departmental budgets for the rest of the decade, prioritising health and security while conceding that some areas would feel the squeeze.