Analysis: Truss can’t buck the markets October 14, 2022 Around eight minutes is how long prime minister Liz Truss today allocated to explain why she sacked her chancellor for implementing her tax cuts and signed off her second mini budget U-turn. She clarified neither. She answered four questions and committed to her “mission” to boost growth in the UK at a Downing Street press [...]
Liz Truss U-turns on mini budget plans to reverse corporation tax hike October 14, 2022 Liz Truss signed off another U-turn today, rolling back on plans to reverse corporation tax rising to 25 per cent from 19 per cent. The move marks a second embarrassing climb down from the government’s tax cutting mini budget, which was characterised by Truss and former chancellor Kwasi Kwarteng as their blueprint for growth. Financial [...]
Liz Truss appoints Jeremy Hunt as chancellor after Kwarteng sacking October 14, 2022 Jeremy Hunt has been appointed as the new chancellor after prime minister Liz Truss sacked Kwasi Kwarteng today following weeks of market turmoil triggered by last month’s mini budget. Hunt is the fourth chancellor this year. According to bookmaker Betfair, Truss is now odds on to step down as prime minister. Kwarteng wrote to Liz [...]
UK borrowing costs tank as mini budget U-turn rumours gather pace October 14, 2022 UK borrowing costs fell sharply today driven by chancellor Kwasi Kwarteng and prime minister Liz Truss reportedly set to U-turn on more parts of their mini budget. The chancellor has today cut short his trip to the International Monetary Fund’s Washington meetings to hold emergency talks with Truss in London. Rumours of a second U-turn [...]
Kwarteng returns from US early for crisis talks with Truss amid speculation of U-turn and a Tory coup October 14, 2022 Kwasi Kwarteng is to cut short his visit to the United States, to hold crunch talks with the Prime Minister before an expected mini-budget U-turn. The embattled finance chief left the International Monetary Fund gathering and headed home overnight, following a fiery briefing with journalists. This comes as The Times reported that a group of [...]
Bank of England warns of ‘severe risks’ to market stability and financial crisis debt levels October 12, 2022 The Bank of England’s emergency £65bn bond buying scheme – that its chief Andrew Bailey last night confirmed will end on Friday – has been fighting “severe risks” to UK financial stability, the central bank said today. Turmoil in UK gilt markets since the government’s mini budget threatened to trigger “an excessive and sudden tightening [...]
Exclusive: Ex Tory chair Baroness Warsi says PM Liz Truss should call a General Election October 12, 2022 A former chair of the Conservative Party has said Prime Minister Liz Truss should call a General Election. Speaking exclusively to City A.M., Baroness Sayeeda Warsi said prime minister Liz Truss either “had to just carry on with the 2019 manifesto – or go to the electorate” upon entering Number 10. “Because neither of those [...]
Bank of England steps up bond market support again to tame ‘risk to financial stability’ October 11, 2022 The Bank of England today stepped up its emergency bond buying scheme to tackle “a material risk to UK financial stability”. It is the second time in as many days the Bank has ramped up support for the UK bond market, underscoring the scale of volatility it is grappling with. The monetary authority led by [...]
£62bn of spending cuts needed to balance books, IFS forecasts October 11, 2022 Liz Truss and Kwasi Kwarteng will need to slim the size of the state by £62bn to put the UK’s public finances on a stable footing, a top economic think tank said today. The prime minister and chancellor could be forced to reduce education and transport spending, which suffered deep cuts during the David Cameron [...]
OBR financial report and government fiscal plan to be delivered on 31 October October 10, 2022 The UK’s spending and borrowing watchdog’s assessment of the government’s tax cutting splurge will be released on 31 October, chancellor Kwasi Kwarteng announced today. In a letter to Tory MP and chair of the treasury select committee, Mel Stride, Kwarteng said he has decided to bring the Office for Budget Responsibility’s (OBR) forecasts forward from [...]