Letters of no confidence in Liz Truss’s prime ministership are starting to pile up amid panic over her government’s economic proposals, a former Conservative minister has claimed. A former minister in Boris Johnson’s government told Sky News that letters that could trigger a vote of confidence have already been sent to the chairman of the 1922 Commission, Sir Graham Brady. The MP accused the Trust and its finance ministers of “playing A-level economics with people’s lives”, adding: “The issue is that the Government’s fiscal policy is at odds with the Bank of England’s monetary policy – so they are fighting between their. Whatever Kouassi gives, the Bank takes away… You can’t have a disagreement on monetary and fiscal policy.” It comes after the pound fell almost five percent to an all-time low as investors rushed for the exits in the wake of the new government’s budget plan. The currency fell to an unprecedented $1.0327, extending a 3.61 percent drop since Friday, when Finance Minister Kwasi Kwarteng unleashed historic tax cuts.
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The prime minister and chancellor are ‘out of control’, says Reeves
Liz Truss and Kwasi Kwarteng are “out of control”, shadow chancellor Rachel Reeves told the Labor conference – a scathing remark met with rapturous applause and applause. “This government has undermined the Bank’s independence, sacked the respected permanent secretary to the Treasury and silenced the Office for Budget Responsibility,” he said. Repeating the comparison of the prime minister and chancellor to “desperate gamblers in a casino chasing a losing streak”, he said: “They’re not playing with their money, they’re playing with yours. “They’ve lost credibility, they’re losing confidence, they’re out of control.” Emily Atkinson26 September 2022 14:00 1664196007
Labor commits to a minimum wage that “reflects the real cost of living”
Rachel Reeves has pledged to guarantee a minimum wage that “reflects the real cost of living” if she becomes chancellor. He told delegates: “On my first day as chancellor, I will write to the Low Pay Commission with a simple directive: that the minimum wage be set at a level that reflects the real cost of living. “The last Labor government delivered Britain’s first national minimum wage. “The next Labor government will introduce a real living wage. This is how we will show respect to workers, this is how we will give workers security and this is how we will also develop our economy. “It’s time for a government that’s on your side.” Emily Atkinson26 September 2022 13:40 1664195693
BoE ready to issue emergency declaration
The Bank of England could issue an emergency statement on the sterling crisis later today. Commentators, including the FT’s Chris Giles, say the government and the bank have yet to rule that out. Rory Sullivan26 September 2022 13:34 1664195424
When is the Bank of England’s next interest rate announcement?
After the pound’s rapid fall, it is expected that the Bank of England will have to step in by raising interest rates to curb inflation. The bank’s Monetary Policy Committee (MPC) is not scheduled to discuss interest rates before early November. However, he may be forced to act sooner. My colleague Joe Sommerlad reports:
When is the Bank of England’s next interest rate announcement?
The pound plummets as currency markets react against the new chancellor’s drastic ‘mini-budget’, sparking fears that emergency intervention may be necessary Rory Sullivan26 September 2022 13:30 1664194900
Labor will “never abdicate” fiscal responsibility
Shadow chancellor Rachel Reeves reiterated her party’s commitment to fiscal responsibility. It comes after the government was accused of betting on the British economy through the tax cuts it set out in Friday’s “mini budget”, a policy that spooked investors and sent the pound tumbling to a record low against the dollar. “The Labor Party will never waver in our commitment to fiscal responsibility,” Ms Reeves said, adding that there would be no return to austerity. Every policy announced by Labor and every line in our manifesto will be carefully costed and fully funded,” he said. Rory Sullivan26 September 2022 13:21 1664194807
An ’emergency meeting’ of the Bank of England is needed, economists say
Some economists have raised the possibility that the Bank of England may need to call an emergency meeting to raise interest rates again. Top economist Mohamed El-Erian told BBC Radio 4 that the Bank would have to raise interest rates “by a full percentage point to try to stabilize the situation”. Sushil Wadhwani, formerly of the Bank’s monetary policy committee, said Governor Andrew Bailey would have to call an emergency meeting to raise interest rates next week. “The argument for waiting a week would be to give them time to properly assess the additional news.” Asked Sir John Gieve, former deputy governor of the Bank of England, told BBC Radio 4: “That’s what they’ll have to do if they want to change base [interest] percentages.” However, Sir John added: “Emergency meetings are avoided if possible and I’m sure they will try to avoid it.” Emily Atkinson26 September 2022 13:20 1664193907
“Trickle-down is a very simple idea – and very wrong,” says Reeves
Rachel Reeves has accused the government of “12 years of failure” as she criticized its “inadequate” approach to the economy. The shadow chancellor said: “I dare any Tory MP to tell a nurse or a care worker to their face that what our country really needs right now is bigger bonuses for bankers. “Trickle-down is a very simple idea – and very wrong.” Ms Reeves said the government’s “ideology” had “nothing” to offer workers “beyond longer hours, lower wages and less respect”. Emily Atkinson26 September 2022 13:05 1664193036
Labor is committed to thousands of other doctors, nurses and midwives by reinstating the 45p tax rate.
Labor is promising thousands more doctors, nurses and midwives by reversing the Tories’ scrapping of the 45p tax rate for the highest earners. Rachel Reeves, the shadow chancellor, said the billions saved would deliver “one of the biggest expansions of the NHS workforce in history” – rather than giving rewards to the UK’s richest people. He also pledged to introduce a much higher minimum wage in line with the “real cost of living” on the “first day” of Labour’s win. Our deputy political editor, Rob Merrick, has this fascinating story:
Labor is committed to thousands of other doctors, nurses and midwives by reinstating the 45p tax rate.
Labor is promising thousands more doctors, nurses and midwives by reversing the Tories’ scrapping of the 45p tax rate for the highest earners. Emily Atkinson26 September 2022 12:50 1664192407
No 10 refuses to say whether Kwarteng will have crisis meeting with Bank of England governor
No 10 declined to say whether the chancellor would meet the governor of the Bank of England urgently to discuss the state of the pound. It comes amid speculation that the Bank of England will be forced to raise interest rates again. The Prime Minister’s official spokesman said: “I know he speaks regularly with the Governor of the Bank of England. I don’t know when the next debate is scheduled.” The pair meet “regularly”, the spokesman said. “I am not aware of any change to this regular series of meetings that they have and that the chancellor has set over the weekend.” Emily Atkinson26 September 2022 12:40 1664192095
Rachel Reeves accuses Tories of ‘energy disarmament’
Labour’s shadow chancellor Rachel Reeves told conference delegates she would be the first “green chancellor” and accused the Tories of “energy disarmament”. Addressing the energy sector, Ms Reeves said: “A proper windfall tax would mean workers wouldn’t have to foot the bill.” On climate change, he said: “We are feeling the consequences of a 12-year Tory experiment in unilateral energy disarmament.” He said under Labor fracking was “not going to happen”, adding that the alternative was Labour’s “green welfare plan” to deliver “the only viable solution to the energy crisis”, which he said would include investment in renewables and nuclear energy. He said: “On climate change, the cost of inaction today will mean much greater costs tomorrow. I refuse to let our children pick up the pieces of our failure. “I will be responsible chancellor. I will be Britain’s first Green chancellor.” Emily Atkinson 26 September 2022 12:34
