The British pound hit an all-time low against the U.S. dollar on Monday, reflecting a highly negative review of the new government’s plan for big tax cuts and borrowing and adding to the anxiety of consumers already preparing for soaring energy bills this winter.

The sharp drop in the value of the pound comes as the British government grapples with soaring public debt and a cost-of-living crisis, amid deteriorating investor confidence. It also raised the prospect that Britain’s central bank may intervene in currency markets to shore up the pound.

The British pound hit its lowest-ever level against the U.S. dollar Monday, dropping heavily after the U.K. government announced a series of tax cuts on Friday, before later paring losses.

The currency touched $1.0349 during Asian trading hours Monday, breaking through its previous record low in 1985. The pound was recently trading at $1.0776.

The currency sold off dramatically after U.K. Chancellor of the Exchequer Kwasi Kwarteng unveiled a massive tax-cutting package Friday, which will be paired with subsidies for households and businesses.