The pound’s historic fall in value will likely “require a significant monetary policy response”, the Bank of England’s chief economist said, as he sought to reassure markets spooked by Chancellor Kwasi Kwarteng’s mini-budget. The Bank of England warned on Monday that interest rates could rise “as long as necessary” to control inflation as mortgage lenders temporarily withdrew deals for new customers and traders based on rates of almost 6% next year, sparking some fears of a future housing crash. While the pound rose slightly on Tuesday morning following interventions by the Bank of England and the Treasury, Labor leader Sir Keir Starmer used his speech at the Labor conference in Liverpool to accuse Liz Truss’s government of “losing control of the British economy’. But Mr Kwarteng insisted during a meeting with City bosses on Tuesday that he was “confident” about his financial plan, telling them during a meeting on financial deregulation: “Our approach will work”.
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David Lammy attacks Empire ‘twisted lies’ that enslaved millions
Shadow Foreign Secretary David Lammy hit out at Empire’s “twisted lies” that enslaved millions. Speaking at the Labor conference, the Tottenham MP linked the imperialism of the slave trade to Russia’s attack on Ukraine. He also tore into what he called 40 years of failed conservative foreign policy.
David Lammy attacks Empire ‘twisted lies’ that enslaved millions
Shadow Foreign Secretary links slave trade shame to Russia’s attack on Ukraine Rory Sullivan27 September 2022 18:20 1664298008
The cost of living protests coincide with the Tory conference
Protest groups are to join forces for a ‘day of action’ on the cost of living during the Tory conference, writes Jon Stone. Organizations such as the Don’t Pay campaign, Just Stop Oil and Enough is Enough will take to the streets in dozens of cities on October 1 – in what is expected to be the largest set of cost-of-living protests yet.
Cost of living protests kick off Tory conference as bill hike begins
Cost of living and climate protesters to unite for national day of action Rory Sullivan27 September 2022 18:00 1664296808
Prosperous Labor believe Truss’ ‘scorched earth’ approach could pave their way to power
Some political commentators said they had rarely seen a Labor conference so full of expectations. The opposition party appears to be growing in confidence after jumping to a 17-point lead over the Tories following the sterling crisis sparked by the government’s mini-budget.
Prosperous Labor believe Truss’ ‘scorched earth’ approach could pave their way to power
MPs are beginning to believe that Tory mistakes will put Keir Starmer in Downing Street Rory Sullivan27 September 2022 17:40 1664295608
Lammy calls for a special court to prosecute Putin over the war in Ukraine
Shadow Foreign Secretary David Lammy has called for a special tribunal to try Russian President Vladimir Putin for his “crime of aggression” against Ukraine. The Labor leader said: “No act of imperialism is ever the same. “But Vladimir Putin’s brutal invasion of Ukraine this year was just the latest front in an age-old war between democracy and dictatorship. Freedom and submission. Empire and independence. “As Vladimir Putin continues to wage his barbaric war, let’s send a message directly to him: we will set up a special court to prosecute you for your crime of aggression. “And whether it takes six months, three years or ten, Ukraine will win.” Rory Sullivan27 September 2022 17:20 1664295382
Rupa Huq offers Quarteng ‘sincere apology’
Rupa Huq has offered Chancellor Kwasi Kwarteng a “sincere and heartfelt apology” for her “bad” comments describing him as “superficially” black. The Ealing Central and Acton MP was stripped of the Labor whip earlier today for her remarks. Rory Sullivan27 September 2022 17:16 1664294408
Keir Starmer on Brexit
Deputy political editor Rob Merrick has more details on Keir Starmer’s Brexit comments this afternoon. The Labor leader accused the Tories of betraying a public who voted for better public services and stronger communities. In his most scathing criticism of the government’s handling of EU withdrawal, he said it epitomized the way ministers “lean from crisis to crisis” on issues. Insisting that Labor would “make Brexit work” – not seek to overturn it – Sir Keir said only he could deliver on Leave’s promise that people would “take control” of their lives.
Brexit is the Tories’ ‘biggest failure’ with ‘no plan for the future’, says Keir Starmer
‘With Liz Truss, the Tories are changing the meaning of Brexit before your eyes,’ warns Labor leader Rory Sullivan27 September 2022 17:00 1664293208
Tory donor makes huge profits from falling pound
Conservative party donor Crispin Odey is among those who made huge profits by devaluing the pound before the currency crisis. He has donated more than £350,000 to the Tories, according to Electoral Commission records. Odey Asset Management’s European hedge fund is said to have risen about 145 percent after Mr Odey’s bet against the pound and government bonds in the bullion market. “It’s been useful,” Mr Odey told the Financial Times of his short position on sterling, describing his bets against gold as “the gifts that keep on giving”.
Tory donor makes huge profits from falling pound
‘It’s been useful,’ says Crispin Odey on his bets against Sterling amid market turmoil Rory Sullivan27 September 2022 16:40 1664292216
Labor removes party whip after MP calls Kwarteng ‘superficially’ black
Labor has stripped MP Rupa Huq of the party whip after she called Chancellor Kwasi Kwarteng “superficially” black. In audio posted online, Ms Huq was heard discussing his private school background, before adding that “you wouldn’t know he was black” when you heard him speak. The MP for Ealing Central and Acton, west London, appeared to have made the comments at a fringe event at the Labor conference in Liverpool on Monday. A Labor spokesman said: “We obviously condemn her comments, they are completely inappropriate and we would call on her to apologize and withdraw them.”
Labor removes party whip after MP calls Kwarteng ‘superficially’ black
In an audio posted online, Rupa Huq was heard discussing the history of the chancellor’s private school Rory Sullivan27 September 2022 16:23 1664290902
“Significant policy response” coming, says Bank of England economist
The Bank of England’s chief economist, Huw Pill, reiterated the Bank’s willingness to raise interest rates further – admitting there will be “tough times” to get inflation back to its 2% target. “I think it’s hard not to conclude that all of this is going to require a significant monetary policy response,” he told the International Monetary Policy Forum on Tuesday. He said the Bank’s Monetary Policy Committee (MPC) “cannot be indifferent” to the repricing of financial assets (ie market turmoil) in recent days. But he added: “We need to be confident about the stability of the UK’s economic framework.” Adam Forrest27 September 2022 16:01 1664290094
Analysis | How Kwasi Kwarteng’s budget hurt the economy and what will happen now
With the government’s economic policy – described as a “doomsday cult” by the chief economist of the world’s biggest wealth manager UBS – having sent the pound into a slump, our policy correspondent Jon Stone takes a look at how the mini Friday’s budget has hurt the economy:
How Kwasi Kwarteng’s budget hurt the economy and what will happen now
Politics Correspondent Jon Stone reveals how unfunded tax cuts pulled the rug from under the UK economy Andy Gregory27 September 2022 15:48
