The governor of the Bank of England is expected to say in a few minutes: Recently, the UK government has made a number of budget announcements and has set October 31st as the date for a further budget statement. The MPC [monetary policy committee] she will respond to all this news at her next meeting in less than three weeks from now. This is the correct order in my opinion. By then we will know the full scope of fiscal policy. But I will repeat what we have already said. We will not hesitate to raise interest rates to meet the inflation target. And, as things stand today, my best guess is that inflationary pressures will require a stronger response than we thought in August. Updated at 3.25pm BST Important events
44 m ago The chancellor will delay the income tax cut by 1p. 3 hours ago Here’s a summary of the latest developments… 4 hours ago Long Covid could be one of the factors influencing UK labor shortages, says Andrew Bailey 4 hours ago The governor of the Bank of England says he had a “direct meeting of the minds” with the new chancellor 4 hours ago Bank of England governor says in tough times UK needs to be ‘very clear’ about its intervention framework 4 hours ago UK financial markets have seen ‘brutal moves’ in recent weeks, says Bank of England governor 4 hours ago Bank of England governor says inflationary pressures will need ‘stronger response’ than expected 6 hours ago On October 31 the budget plan will effectively be a full budget, Hunt admits 7 hours ago Westminster SNP leader says government is ‘loose’, calls for general election 8 hours ago SNP calls on Scottish Conservatives to ‘get a backbone’ and tell Truss to resign 9 hours ago Labor leader accuses Truss of ‘grotesque mess’, referring to Kinnock’s speech 9 hours ago The thinktank says Hunt’s efficiency savings are politically unsustainable 9 hours ago Jeremy Hunt’s highlights from this morning… 10 hours ago Shadow chancellor declares ‘Tory crisis’ after Jeremy Hunt’s first interviews 10 hours ago Kwarteng says Truss bought herself “a few weeks” by firing him 10 hours ago Actress Miriam Margolyes says ‘Fuck you, bastard’ about Jeremy Hunt live on air 11 hours ago Hunt insists Truss won the leadership election “fair and square” but admits: “Some people, including me, didn’t vote for the prime minister” 11 hours ago Hunt says UK already has debt at 97% of GDP and tax cuts must be ‘sustainable’ 11 hours ago Taxes should go up, Hunt says 11 hours ago The new chancellor backs the “core elements” of the prime minister’s economic plan 12 hours ago Mistakes made in the mini-budget, says the new chancellor 12 hours ago Labor is calling for a general election 12 hours ago Liz Truss clings to power after a chaotic day
BETA filters Key facts (23)Liz Truss (29)Jeremy Hunt (26)Keir Starmer (12)Kwasi Kwarteng (10)Andrew Bailey (9) Jon Ungoed-Thomas The historic town of Downham Market in Liz Truss’s South West Norfolk constituency should be a personal bastion in political crisis and economic turmoil. This weekend, confidence in the prime minister in her own conservative heartland fell. While Downing Street officials ponder whether Truss is now in the final days of her term and MPs plot a possible succession, the verdict on her record among the market stalls, coffee bars and busy shopping streets of the market town has been harsh . Sitting in the town’s Greggs bakery, Ian Bond, 74, a retired engineering manager who was born in Downham Market, said he saw the mini-budget as “Black Friday” for the Conservative party. The Sunday Times reports that the prime minister’s go-betweens contacted allies of Sajid Javid, the former chancellor, last week to gauge his appetite for a return to the Treasury to replace Kwasi Kwarteng. The newspaper reported that Javid’s terms were too much for Liz Truss to accept. “Sajid would only have done it if he was in total control,” said a Javid ally. Three sources said Javid had insisted on full autonomy over tax and spending policies, the freedom to appoint his own political team and the reinstatement of Sir Tom Scholar, the veteran permanent secretary to the Treasury who was unceremoniously sacked by Kwarteng and Truss in their first day. at the office.
The chancellor will delay the income tax cut by 1p.
New chancellor Jeremy Hunt is to delay a 1p cut in income tax to help plug a black hole in public finances that had reached £72 billion, according to the Sunday Times. Hunt, who replaced Kwasi Kwarteng yesterday, is expected to announce that plans to cut the basic rate of income tax next April will be delayed by a year. The cut to 19 per cent will now take effect at the time previously proposed by Rishi Sunak, the former chancellor, who was Liz Truss’ main rival for the leadership. Updated at 18.28 BST Crossbench peer Lord Jim O’Neill said he assumed there would not be much “tension” between Jeremy Hunt and the prime minister because otherwise the government is “over”. The former chief economist at investment bank Goldman Sachs told BBC Radio 4’s PM show: “I can’t imagine how the Prime Minister could afford to lose him quickly if she wanted to be left alone. “Well, in that sense, he’s very influential, but his dilemma is that the backs of this strange era of the Conservative Party are just filled with so many different factions, and a lot of them will disappear from Jeremy’s story, as evidenced by In fact, he failed to become leader twice, but even with what he implied now it must happen.” He added: “I’m making a really naive assumption that he only got this job because he was given carte blanche by a desperate prime minister.” Updated at 18.16 BST Astonishing as it may sound to someone who hasn’t paid attention to politics since around 2016, after just over a month in office, a consensus is building that Liz Truss could be done as prime minister. But who could succeed her as the fifth Conservative prime minister from 2016? Among the candidates are runner-up Rishi Sunak, Defense Secretary Ben Wallace and, of course, Truss’s predecessor Boris Johnson. Read the full story here: Kwasi Kwarteng campaigned against scrapping the 45p top tax rate in last month’s mini budget but was overruled by Liz Truss, according to a report in the Mail on Sunday. The newspaper said the sources claimed Kwarteng wanted to wait until next year before introducing the measure for fear of “doing too much at once”, but was told: “No, let’s do it”. The mini-budget, delivered on September 23, shook market confidence in the government’s long-term ability to pay its debts, sending the pound tumbling and government borrowing costs soaring. The abolition of the 45p rate was one of the most controversial measures in the package. Truss fired Kwarteng on Friday as part of an effort to reassure markets and quell turmoil in its own backroom. The new chancellor, Jeremy Hunt, is due to issue a budget statement on 31 October. Updated at 17.55 BST MPs from across the Commons pay tribute to Sir David Amess on the anniversary of his murder. Former Home Secretary Priti Patel said Sir David was an “outstanding public servant full of kindness, energy and integrity” who was killed in a “senseless attack on democracy”. Sharing a photo of herself with Sir David, Conservative MP Alicia Kearns called him a “wonderful friend” and said “a man so full of love and joy will never be forgotten”. Labour’s Marsha de Cordova said she remembered a “kind, caring and dedicated public servant”, while David Lammy called him “a politician who cared deeply about his constituency, animal welfare and so many issues beyond this”. Prime Minister Liz Truss, her predecessor Boris Johnson and Labor leader Sir Keir Starmer also paid tribute. Today my heart goes out to our wonderful friend Sir David Amess’s wife Julia and their children. A man so full of love and joy will never be forgotten and his absence is felt. He was a real civil servant. pic.twitter.com/3t4LxLequl — Alicia Kearns, MP for Rutland and Melton (@aliciakearns) October 15, 2022 Updated at 17.34 BST Almost a fifth of all households in Britain will spend more on housing costs by the end of 2024, according to analysis by the Resolution Foundation thinktank. The group said the average mortgage lender would pay £3,500 a year more in the fourth quarter of 2024 than in the third quarter of 2022 and that the additional spend would total £26 billion. In London, the average additional spend rises to £5,500. The think tank said that by the end of 2024, more than 1.8 million households with mortgages will see housing costs take up at least 10% more of their household income. He added that by the first quarter of 2027, almost no household with a mortgage would be unaffected by the rate hike. Writing on Twitter, Resolution Foundation chief executive Torsten Bell said the changes would be a “massive deal” for the economy. Updated at 5.15pm BST Liz Truss’s premiership now depends on the success of the economic report due to be delivered on October 31, one of her MPs has said. Sir Geoffrey Clifton-Brown, treasurer of the 1922 backbench committee, told LBC that if the statement failed to restore market confidence in the government, Truss should step down. “I think it’s just right,” he said. “I think a huge amount is based on that. “If this statement – and God forbid, I hope it doesn’t – fails to satisfy the markets and satisfy everyone else, and the economy is still in shambles, then I think we’re going to be in a very difficult situation. » He added that he “didn’t expect this to happen.” “I think so [new chancellor] Jeremy Hunt is a man of capable caliber who will find a solution that inspires the confidence of…