Truss admits ‘disruptions’ in markets as S&P downgrades UK outlook – live

Liz Truss has admitted her Chancellor Kwasi Kwarteng’s mini-budget caused “disruption” as she vowed to “do things differently” to previous Conservative leaders.

As the Tories prepare for their annual conference, the prime minister warned the country was facing a “tough winter” as she clarified she had no plans to change her radical borrowing-driven tax cut agenda.

“I know there was disruption, but it was really, really important that we could help the families as quickly as possible,” the prime minister told broadcasters on Friday, noting the cap on the cost per unit of energy.

RMT General Secretary Mick Lynch has apologized to the public, including those taking part in the London Marathon, as they face transport difficulties due to rail strikes.

Speaking to BBC Breakfast, Mr Lynch said the union didn’t want to cause people any inconvenience but warned that the government had sparked the row.

When asked if he would apologize to the public, he said: “Absolutely. We don’t want to bother the public and we’re really sorry that this is happening.

“But the government started this argument. They are (blaming) us for the challenges of cutting our jobs, cutting our pensions and cutting our wages against inflation.”

Mr Lynch said he had spoken to new Transport Secretary Anne-Marie Trevelyan, who seemed “very pleasant”, but added that a change in attitude at the negotiating table was needed.

He added: “Grant Shapps hasn’t allowed a compromise so I’m hoping there’s a change of mood and a change of attitude.”

Welsh Minister Robert Buckland admitted there had been “some turbulence” in markets this week – but insisted the government was sticking to the plan to “stimulate growth”.

While economists and union leaders warned against a return to austerity, the cabinet minister hinted that public spending cuts were on the way adam woods writes.

“We intend to be extremely tough when it comes to cutting public spending,” Buckland said Sky news – to say there would be spending announcements in the coming weeks.

The minister said the government wanted to reassure the market that it would “try to balance the books in a sensible way” that departments were “as efficient and as lean as possible”.

Greens have called for a £75 billion emergency tax package targeting polluters and the country’s richest people to fund a nationwide insulation and renewable energy scheme.

At the party’s annual conference in Harrogate, co-leader Carla Denyer called for a new wealth tax for the top 1% of households – starting with a marginal rate of 1% for those with £3.4million and going up to 10% for those aged 3 .4 million pounds sterling 18.2 million and up.

She said there should be a “dirty profits tax” on oil and gas in the North Sea, which would serve as a stepping stone to a permanent carbon tax on polluting industries.

Families have been urged to take a picture of their meter reading and do whatever they can to reduce their energy consumption as prices rise from Saturday.

The amount a household pays for each kilowatt-hour of electricity they use has risen to 34p from the already record-breaking 28p paid by families.

Gas prices rise under the new price cap from 7p to 10p per kilowatt hour.

That means the typical UK household spends around £2,500 on their energy bill – but those who use a lot of gas and electricity obviously pay more.

Just a year earlier gas was 4p per kilowatt-hour for capped customers and electricity was 21p.

The chancellor has defended his mini-budget by saying the government “had no choice” but to do “something else” to stimulate the economy.

When the prime minister admitted the strategy had caused “disruptions,” Kwasi Kmachen said the public expected public spending to be tightly controlled.

“British taxpayers expect their government to be as efficient and effective as possible and we will deliver on that expectation,” he wrote The Daily Telegraph.

“Not all of the measures we announced last week will be universally popular. But we had to do something else. We had no other choice.”

“One way to appreciate the magnitude of the task Liz Truss faces at next week’s Conservative Convention is to imagine drafting her speech for her.”

Sean O’Grady ponders what the Prime Minister could try in Birmingham.

Tory MPs are reportedly in talks with the Labor Party to beat certain parts of Kwasi Kwarteng’s mini-budget.

Rebels appear to be in talks with the opposition to ensure the government’s controversial new measures are put to a vote in the House of Commons.

“So Kwasi Kwarteng was warned. I have the highest, unimpeachable authority that, prior to his tax cut measures, the Chancellor was told that the markets would react badly.

Kwarteng didn’t seem to care, saying he was relaxed about the response. It’s bizarre, makes no sense: a chancellor who apparently thinks he’s somehow impenetrable, on a mission, and hangs the opposition.”

As the Government’s energy bill cap comes into effect, Business Secretary Jacob Rees-Mogg has urged the public to stay alert to scams.

“This weekend begins unprecedented government support, protecting families and businesses across the country from an 80% surge in energy bills this winter,” he said.

“I also urge people today to beware of scams. This support reaches people automatically and there is no need to apply.”