Ahead of an expected announcement of new measures to aid households on Thursday, UK Cabinet Office Minister Steve Barclay said the Kingdom must pay for the increased support in a way that does not deter investment.

"In terms of paying for that, as we look at the balance between how much is done through debt, and how much is done through revenue raising, we need to do that in a way that doesn't deter investment," Barclay said.

UK Finance Minister Rishi Sunak is likely to announce measures, which will likely include a 10 billion pound ($12.6 billion) package of support, an energy industry source said.

Market reaction

GBP/USD is testing lows near 1.2550, uninspired by a likely announcement of fiscal measures, which could ease the cost-of-living pressures faced by households. The spot is down 0.09% on the day.