Kwarteng announces new tax rules – live

Interest rates could be raised “as much as needed” to control inflation, the Bank of England has warned.

The announcement came after the pound fell to an unprecedented low of $1.03 this morning.

Markets panicked on Friday over new Chancellor Kwasi Kwarteng’s mini-budget, in which he announced controversial £45bn in tax cuts – including the elimination of the 45p tax bracket.

Minutes after the market closed, the bank’s governor, Andrew Bailey, said he was ready to raise interest rates to curb inflation.

Read the full story from the political editor Andrew Woodcock here:

Chancellor Kwasi Kwarteng is expected to announce details of the government’s medium-term financial plan on November 23.

The Treasury said it will cover how the government intends to ensure debt as a percentage of GDP falls over the medium term.

At the same time, the Office for Budget Responsibility publishes its updated forecast for the rest of the calendar year.

The Ministry of Finance also confirmed that there will be a budget in the spring, with a further forecast from the OBR.

The pound’s record loss has fueled speculation that the Bank of England may have to step in to try to stabilize the currency market.

Many analysts have urged Governor Andrew Bailey to intervene before things get worse and the Bank of England does not deny that it will issue a statement on sterling later on Monday.

Some market pundits want the bank to hike interest rates to restore “credibility” to the UK economy, but such a move would put the Bank of England squarely against the Treasury – with Mr Bailey responsible for the mess that Chancellor Kwasi Kwarteng wreaked , effectively cleans up.

Holly Bancroft has the data:

The Labor conference has voted in favor of motions aimed at obliging the next Labor government to bring the railways and Royal Mail back into public ownership.

The conference also voted in favor of a motion calling for a negotiated solution to the rail dispute and “supporting all Labor MPs picketing until such a result is achieved”.

Delegates also voted unanimously for wage increases at least in line with inflation, a minimum wage of £15 an hour and strengthening collective rights.

Greater Manchester Mayor Andy Burnham said he would prioritize public services and help those on the lowest incomes, rather than cut income tax.

After Sir Keir Starmer and Shadow Chancellor Rachel Reeves said they would not reverse the Government’s 1p cut in the base rate, Mr Burnham again said he had done things differently.

“Public services are facing a really challenging winter and we all need them to be able to carry on through this challenging winter,” he said BBC Radio 4 The world in one.

“I would have said it’s a moment to secure public services with pay rises for civil servants who would otherwise see their heads slipping underwater in a livelihood crisis and those on the lowest earners.”

Mr Burnham denied he was trying to cause trouble for the leadership at the Labor Party conference but said he had a duty to give them a ‘blast of reality’ on behalf of the people he represented.

“I speak of the real world as I see it and I see the residents of Greater Manchester at risk. I didn’t come here to cause trouble. It’s my job to give them that touch of reality,” he said.

Labor is to draw up plans for a national network of climate business centers to win Britain’s export opportunities as the world shifts to cleaner, greener technology, The Independent has learned.

The move follows Sir Keir Starmer’s decision to put environmental investment at the heart of Labor’s bid at the next election, with a promise to make the UK a green “superpower” by 2030 through massive investments in sun and wind to wean the power system from fossil fuel fuels.

International Shadow Trade Secretary Nick Thomas-Symonds will use his speech at the party’s annual conference in Liverpool to argue that green technology can bring dividends not only in the fight against climate change but also in creating high-skilled jobs for the UK and opening up new markets for the industries of the future.

Our political editor Andrew Woodcock Reports:

British tourists have been warned to monitor currency fluctuations “carefully” before exchanging money for their trips.

Nick Boden, head of foreign currency provider Post Office Travel Money, said that “sterling’s volatility makes it impossible to predict how exchange rates will behave over the coming weeks”.

“Our advice for people planning to travel abroad is to keep a close eye on price movements in the weeks leading up to your departure and change money at times when prices are rising,” he added.

The $500 purchase last week cost around £440 but this has now risen to £480 as the pound has fallen to an all-time low against the US dollar.

The Bank of England is understood to be considering issuing an emergency declaration this afternoon after the pound fell to its lowest levels against the US dollar.