Benefits hit as Liz Truss tries to stem the mini-Budget bleeding

Ms Truss repeatedly defended last Friday’s announcements during her local media round, telling BBC Radio Norfolk: “This is the right plan that we have set out.”  She pointed to turmoil on financial markets across the world and gave no indication that any element of the mini-Budget would be reversed despite the financial fallout. On Thursday … Read more

Liz Truss is embarked on a course of sheer madness, taking the Bank of England with her

The Bank of England’s emergency purchase of gilts buys a reprieve of thirteen days at enormous institutional risk. The rescue was a last resort to avert a doom loop in the pensions system and the £1 trillion mortgage market. It solves nothing in itself. The Bank has been put in the invidious position of having … Read more

Ministers told to make savings as Tory anger over markets chaos grows

Mr Philp’s letter will insist that departments find savings where possible and live within existing budgets. The aim is to reduce the level of government borrowing needed in a bid to calm the markets. Whitehall budgets were already under pressure because of high inflation, but the new instruction from the Treasury will make things worse. … Read more

Liz Truss must hold her nerve as the world tips into a calamitous recession

For the past 25 years, and especially since the financial crisis, the global economy has taken a disastrous wrong turn for which we are about to pay a hideous price. In one of the gravest intellectual errors since communism, many of the world’s cleverest people thought they had discovered the secret to perpetual prosperity. Forget … Read more

London politics LIVE: Kwasi Kwarteng facing Tory backlash as Bank of England steps in to stabilise markets

C hancellor Kwasi Kwarteng faced a growing revolt on Wednesday as a senior Tory MP slammed the “inept madness” in his mini-Budget which sent the pound plunging. After an emergency intervention by the Bank of England to protect Britain’s financial stability, Simon Hoare MP tweeted: “In the words of Norman Lamont on Black Wednesday: “today … Read more

Bank of England warns of ‘significant’ rate rises as Kwasi Kwarteng says his plan will work

T he Bank of England has signalled it is ready to ramp up interest rates to shore up the pound as Chancellor Kwasi Kwarteng insisted he was “confident” his tax-cutting strategy will deliver the promised economic growth. After a day of turmoil in the markets on Monday which saw sterling slump to a record low … Read more

There is no sterling crisis, except in the minds of idiots

It seems any stick will do to beat up on the Government’s new fiscal package. Seeing that there is no logic in attacking fiscal solvency, because the Chancellor has explicitly committed himself to it, the mob of critics have fastened on the fall in sterling as the “canary in the coal mine” that denounces the … Read more

Labour MP Rupa Huq suspended after calling Kwasi Kwarteng ‘superficially black’

Rupa Huq, the Labour MP, has been suspended from the party after sparking outrage by saying that Kwasi Kwarteng, the Chancellor, is “superficially black”. Sir Keir Starmer withdrew the whip from the backbencher over her “racist” remarks about the Chancellor at a conference fringe event. The Labour leader acted after Ms Huq refused to apologise … Read more

The Labour Party is dangerously underestimating Liz Truss’s Tories

There’s a new groupthink gripping British politics. Namely that the Conservative Party has officially lost its mind. Labour, the centre-Left commentariat, a host of establishment economists and a great many Tory MPs are united in horror over the Government’s gamble on “casino” Trussonomics. The story goes that “tax cuts for the rich” are as economically … Read more

What the falling pound means for your wallet

Further price rises in the UK could occur for future launches, should the dollar maintain or increase its strength. Prices that companies have to pay for essential ingredients will also climb, pushing higher costs on to consumers. Paul Davies, chief executive officer at Carlsberg Marston’s Brewing Company, suggested the fall of the pound may cause … Read more