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

Urges Liz Truss to "come out of hiding" to fix the "economic disaster" - follow live
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The Bank of England will ‘not hesitate’ to hike interest rates amid market turmoil

Liz Truss has been accused of going into hiding while her mini-budget was causing economic turmoil as a tax gift.

On Wednesday, the Bank of England had to step in to prevent a crisis in Britain’s major pension funds.

The bank’s decision to buy government bonds — or gilts — was an attempt to calm markets, which were hit by the government’s mini-budget last week.

There was no sign of Ms Truss, who was last seen publicly on the green benches of the House of Commons alongside her Chancellor for his testimony.

Former Cabinet Secretary David Davis said: “This was her manifesto for leadership, so she has to come out and defend it openly.”

Lib Dem leader Sir Ed Davey called on the Prime Minister to remove cover, warning that she only has “24 hours to fix this economic disaster and stop people from losing their homes”.

The government has denied causing the sterling crisis, instead pointing the finger at Russia’s war in Ukraine, which it said was devastating all major economies.


“No reversal of policy,” says the Treasury Department on the mini-budget

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.

Chancellor’s mini-budget includes plans to cut taxes in favor of the wealthiest (Aaron Chown/PA)

(PA wire)


What Rishi Sunak predicted about Liz Truss’ ‘fairytale’ economic plans

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.”


Tells Truss to “come out of hiding”

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.


‘Inevitable’ Tories will lose next election, says former Conservative MSP

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.”


Voices: How did we get into such big financial troubles?

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


Tory MPs aren’t panicking just yet – it’s worse

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.


Rishi Sunak skips Conservative Party Convention

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.


What are government bonds and how will the Bank of England use them to stabilize markets?

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:


No 10 Junk Link Between Mini-Budget And Sterling Crisis

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.


Don’t let the NHS and public services foot the bill for tax cuts, Kwarteng said

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.

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