Jamie Oliver says he has ‘no faith’ in Liz Truss to tackle children’s health
Liz Truss and Kwasi Kwarteng’s mini-budget was the “original sin” that first spooked the markets, a former Bank of England (BoE) chief has said.
Sir Charlie Bean, the former deputy governor of the central bank, told BBC Radio 4’s Today program that the sustained turbulence felt by markets was a result of the government’s proposed “unfunded tax cuts” and the “imminent prospect.” more in the medium term.
Their remarks come after the BoE announced that its emergency support operation to protect them would end this week.
Speaking in Washington yesterday, BoE Governor Andrew Bailey said there would be no further support beyond Friday and it was up to the funds concerned to rebalance their holdings.
“My message to the funds involved: You have three days left now. You have to do it,” he said.
His comments caused the pound to fall again against the dollar, to its lowest rate since September 29.
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The mini-budget is “the source of the market turmoil”
The “origin” of the turmoil in the markets is the chancellor’s mini-budget, the policy and advocacy director of the Pensions and Life Savings Association has said.
Nigel Peaple said: “The origin of these problems seems to have been mainly caused by the mini-budget, because of the market reaction to that mini-budget, because of the uncertainty about the government’s plans.”
He suggested that markets could calm down when the chancellor spells out more details about how he intends to manage the public finances.
Emily Atkinson October 12, 2022 10:18 am
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The Conservative minister is under fire for suggesting tax cuts for women who have more children
A Conservative Party minister has been accused of uncovering “right-wing dystopians” for suggesting a policy to encourage women to have more children to boost the UK’s workforce.
Campaigners condemned the policy, which an unnamed Tory MP suggested to The Sun on Sunday in a weekend story titled “Bonk for Britain”.
The minister argued the policy would boost the UK economy following the lead of Viktor Orbán, Hungary’s far-right populist nationalist prime minister.
Our Women’s Correspondent Maya Oppenheim reports:
The Conservative minister is under fire for suggesting tax cuts for women who have more children
“Tax cuts for mothers to have children are completely pointless and actually insulting when we have the second most expensive childcare system and the third worst maternity pay in Europe,” says the campaigner.
Emily Atkinson October 12, 2022 10:02 am
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Rees-Mogg says the market turmoil has more to do with the bank than the mini-budget
The Bank of England’s inability to raise interest rates in line with the US is causing turmoil in financial markets rather than Kwasi Kwarteng’s mini-budget, Business Secretary Jacob Rees-Mogg has said.
His comments came as Liz Truss prepared to face MPs with the government fighting for the credibility of its economic policies as market turmoil continued.
The Prime Minister will face her first questions in the Commons since Mr Kwarteng’s £43bn tax concession was blamed for unleashing chaos in the city.
Rees-Mogg says City turmoil ‘has more to do with interest rates’ than tax measures
The business secretary suggested that the Bank of England raise interest rates by less than the US Federal Reserve had caused problems.
Emily Atkinson October 12, 2022 9:50 am
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MPs always have a voice, says Rees-Mogg on fracking concern
MPs always “have a say”, Jacob Rees-Mogg has said amid reports some Tory MPs could work with Labor to force a vote on the government’s fracking plans.
Many Tories oppose the move to reverse the fracking ban, one of several issues that have split the party since Liz Truss became leader.
The business secretary told BBC Radio 4’s Today programme: “MPs always have a say in what happens.
“There are many mechanisms that MPs can use to have a say. The government does not have to give votes. There are backbench business debates, there are opposition day debates, there are amendments.”
Emily Atkinson October 12, 2022 9:40 am
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Rees-Mogg ‘denying reality’, say Lib Dems
Responding to Jacob Rees-Mogg’s comments about the economy being in “good shape”, Lib Dems deputy leader Daisy Cooper said he was “in denial about economic reality”.
He added: “His bluff and bluff will do nothing to reassure people worried about their mortgages, pensions and living standards.”
He has admitted his own mortgage has gone up, but he won’t take the necessary steps to help the millions terrified of losing their homes as interest payments go through the roof.”
Adam Forrest 12 October 2022 09:29
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Kwasi Kwarteng’s ‘original sin’ caused uproar in UK, ex-BoE MP says
The radical economic plan presented by Liz Truss and her chancellor Kwasi Kwarteng is the “original sin” to blame for continued market turmoil, the former deputy governor of the Bank of England has said.
Sir Charlie Bean said the “unfunded tax cuts” in the mini-budget had sent markets into a panic as the Bank deliberated whether to continue its emergency support beyond Friday to try to protect pensions.
“We must not forget that this is the main cause [market turmoil] – The original sin here was the mini-budget a couple of weeks ago, and the looming prospect of unfunded tax cuts in the medium term,” he told BBC Radio 4’s Today programme.
Kwasi Kwarteng’s ‘original sin’ caused riots, ex-BoE MP says
Sir Charlie Bean says the bank could extend emergency action to ease “pressure” on the government
Emily Atkinson 12 October 2022 09:19
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More “humiliating” U-changes from the government on the mini-budget?
Rumors continue to grow that the government could roll back more of its mini-budget proposals as markets face sustained turbulence.
Last night, a senior Number 10 official told The Independent that staff were tasked with re-examining the measures revealed in Kwasi Kwateng’s statement to see if changes or turnarounds might be required.
One Conservative MP told Politico that the party could be “heading for the most humiliating turn in modern political history: the whole mini-budget”.
Emily Atkinson 12 October 2022 09:09
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Rees-Mogg accuses BBC of asking questions that ‘fail to meet the requirement of impartiality’
Jacob Rees-Mogg answered the question line on BBC Radio 4’s Today program when asked about the market turmoil that followed the mini-budget.
Asked by presenter Mishal Husain whether the government could bring forward the tax return again from the new date of October 31 to address the crisis caused by the chancellor’s proposals, the business secretary said: “Wait, you’re suggesting that something is causal, which is a speculation”.
He said the instability of pension funds is “not necessarily” related to the mini-budget.
“It could just as easily be the fact that, the day before, the Bank of England didn’t raise interest rates as much as the Federal Reserve did.
“And I think that reaching conclusions about causation is not meeting the BBC’s requirement of impartiality. It’s a comment rather than a question of fact.”
Emily Atkinson October 12, 2022 8:59 am
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Operation S *** storm? Never heard of it, says Rees-Mogg
Business Secretary Jacob Rees-Mogg rejected the “silly names” used by some in the government for the government’s plans.
Mr Rees-Mogg said he had never heard of the phrase “Operation Rolling Thunder” for Liz Truss’ economic plan, which is said to have been “Operation S***storm” by No10 staff .
“There may be some person in the bowels of Downing Street making up silly names for the work that is being carried out within the government. But I have never met that person and no one calls me such silly names.” he told Times Radio.
Adam Forrest October 12, 2022 8:47 am
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Rees-Mogg downplays Truss scrapping energy saving campaign
Jacob Rees-Mogg has mildly reported being overruled by Liz Truss in plans for a public information campaign on energy saving.
The Business Secretary told LBC: “I think this is overstating it.
“We’ve done a number of things and there’s an online advice for households offered by the government.
“Much of this work has been done by the newspapers. There is a lot of advice available to people on how they can save money.”
Emily Atkinson October 12, 2022 8:36 am