pound

The U.K. lender, which is the largest car-finance provider in the U.K. through its Black Horse brand, had already set aside 1.15 billion pounds for potential payouts and administrative costs.

Sterling was weaker against the dollar and traders were increasingly betting on a weaker pound via the options market ahead of the November 26 U.K. autumn budget.

Some analysts have estimated that Reeves will have to raise tens of billions of pounds through either increasing taxes or cutting spending in order to meet her rules which she has described as "non-negotiable".

"I have to keep these players safe. Multi-million pounds worth of assets are here with me. I have to manage them and safeguard them."

But amid Birmingham's political tensions and the challenges many parts of the city face, billions of pounds are being invested.