Urges Liz Truss to “come out of hiding” to fix the “economic disaster” – follow live

While the government has come under fire for its mini-budget unveiled last week, a Treasury Department source told Sky News there “will not be a reversal of policy”.

The source added that Chancellor Kwasi Kwarteng will not resign.

Earlier, Mr Kwarteng vowed to continue the government’s sweeping wave of borrowing-driven tax cuts despite growing calls for a “change of course” amid ongoing market turmoil.

It is reported that Rishi Sunak is avoiding the Conservative Convention this year so that Liz Truss can “own” the unfolding economic chaos.

During a leadership debate on July 15, Mr Sunak accused his rival of a “fairytale economy” by promising unfunded tax cuts.

On Aug. 21, Mr. Sunak’s campaign team released a statement warning that Truss’s economic policies could trigger an “inflationary spiral.”

Calls for Liz Truss to come out of hiding came after the Bank of England was forced to step in to prevent a wider pension crisis on Wednesday.

A former Conservative MSP who believes Liz Truss has lost control of the economy has said it is now safer in the hands of a Labor government.

Glasgow MSP Professor Adam Tomkins added that it was “inevitable” that the Tories would lose the next election because of their handling of the economy.

“It’s an extraordinary thing to say, and I’m saying it because of what Kwasi Kwarteng has done to the market over the past few days,” he said the BBC.

“It is perfectly clear that the UK’s economic future would be in safer hands with Labor in power than the Conservatives.”

Our chief economic commentator James Moore has this report on Britain’s financial woes:

John Rentoul writes about dissatisfaction within the Tory party with the government’s handling of the economy:

The speed of events is breathtaking. Truss has been Prime Minister for 22 days, 12 of which were dedicated to mourning the death of the Queen. But at least one Tory MP is already privately predicting that Truss will be gone by Christmas.

Tory leadership runner-up Rishi Sunak will not attend the forthcoming Conservative Party conference.

The former chancellor has previously warned that Liz Truss’s economic policies could hurt the economy.

Earlier this morning the Bank of England decided to buy long-dated gilts to support the UK economy.

my colleague Joe Sommerlad explains how government bonds work:

In a previous post, we mentioned that the government rejects the idea that their mini-budget caused the currency crisis.

This argument comes despite the pound’s plunge immediately after Mr Kwarteng’s announcement on Friday.

Sky news Sam Coates has more details on refuting #10.

“Cabinet ministers are blurring the link between Friday’s statement and today’s turmoil,” he tweeted.

Kwasi Kwarteng has been warned it would be an “act of national vandalism” if he were to impose austerity measures on the NHS and other public services to calm the turmoil caused by his tax handouts to the wealthy.

The Chancellor is expected to announce measures to tighten the belt in a statement on November 23, to convince markets he can bring the UK’s public finances back under control after last week’s mini-budget.

Treasury Department sources confirmed that Cabinet ministers will be asked to find “efficiency savings” in households, with no exceptions to health care or other departments.