Her comments come as UK S&P Ratings have now changed their outlook from stable to negative this afternoon. Writing in The Sun, Ms Truss admitted that “not everyone is going to like what we’re doing”. He said: “We need to get things done in this country faster. So I’m going to do things differently. It involves difficult decisions and involves disruption in the short term.” After a tumultuous week for the financial market, Chancellor Kwasi Kwarteng insisted he had “no choice” to cut taxes on the wealthy. He also said his November statement would contain a “commitment to spending discipline” as he promised next month’s update would “set out a credible plan to reduce debt as a share of GDP over the medium term”. Meanwhile, S&P estimated that the government deficit would widen by an average of 2.6 percent of GDP annually through 2025.
Basic points
Show latest update 1664604942
Tory MPs ‘may help Labor cut’ parts of Chancellor’s budget
Tory MPs are reportedly in talks with Labor to defeat some sections of Kwasi Kwarteng’s mini Budget. Rebels are apparently in talks with the opposition to ensure the government’s controversial new measures are put to a vote in the House of Commons.
Tory MPs ‘may help Labor cut’ parts of Chancellor’s budget
Some MPs want to bring back the top rate of income tax of 45p Sravasti Dasgupta1 October 2022 07:15 1664603142
Our chancellor is showing a shocking naivety in her handling of the finances
“So Kwasi Kwarteng was warned. I have it on the highest, undisputed authority that he told the chancellor before the tax cuts that the markets would react badly. Kwarteng apparently didn’t care, saying he was relaxed about the answer. It’s weird, it doesn’t make sense: a chancellor who apparently thinks he’s somehow impenetrable, on a mission to hang the opposition.’
Our chancellor is showing a shocking naivety in her handling of the finances
What amounts to disaster is a new government eager to strike, to put down a marker, to show it is different, believes Chris Blackhurst Sravasti Dasgupta October 1, 2022 6:45 am 1664601342
Minister warns of spam as new energy bill cap kicks in
As the government’s energy bill cap kicks in, Business Secretary Jacob Rees-Mogg has urged the public to be alert to scams. “Unprecedented government support starts this weekend, protecting families and businesses across the country from an 80% rise in energy bills this winter,” he said. “I also urge people today to remain alert for scams. This support will automatically go to people and you don’t need to apply.” Sravasti Dasgupta1 October 2022 06:15 1664599542
ICYMI: Truss accused of ‘repeatedly misleading’ public about energy bills
Liz Truss has been accused of “repeatedly misleading” the public by claiming that no one will pay energy bills of more than £2,500. During her morning show on Friday, the Prime Minister told BBC Radio Kent that the Government had stepped in to ensure “no one pays a fuel bill of more than £2,500”. However, several analysts and experts accused the prime minister of misleading public opinion.
Truss was accused of “repeatedly misleading” the public about energy bills
The Prime Minister is asked to “publicly correct her mistake” Sravasti Dasgupta1 October 2022 05:45 1664597742
Everything you need to know about the new energy price cap
The energy price cap is the maximum amount a utility company can charge an average UK customer each year for the amount of electricity and gas they use, preventing businesses from simply passing on cost increases to the consumer. Joe Sommerlad reports on what the energy limit means for you:
What does the energy price cap mean to you?
Liz Truss has moved to rein in household financial bills caused by rising global gas prices Sravasti Dasgupta1 October 2022 05:15 1664594100
Private tenants abandon Tories amid doubts over pledges for new powers for tenants
Private tenants are ditching the Tories after fears Liz Truss will water down promises of new powers to challenge bad landlords, a poll says. One in three tenants who voted Conservative in the 2019 general election – a total of 400,000 people – are now planning to vote for another party, the survey found. This so-called “rent wall” could deprive the Tories of key swing seats such as Hastings and Rye, Milton Keynes North and Gloucester, the analysis suggests. Deputy political editor Rob Merrick has more:
Private tenants abandon Tories amid doubts over pledges for new powers for tenants
Liz Truss warns ‘rental wall’ ready to strip Tories of key swing seats – if promises are broken Maryam Zakir-Hussain October 1, 2022 04:15 1664590500
‘Good call’ between Smart and Shefkovic amid ongoing protocol dispute
UK and EU officials will “meet shortly” after a call on Friday between Foreign Secretary and MEP Maros Sefcovic to discuss the Northern Ireland Protocol. The foreign secretary had his first contact with the vice-president of the European Commission amid an ongoing row over post-Brexit arrangements in Northern Ireland. Talks have stalled in recent months and relations between London and Brussels remain at an ebb after the government angered the EU with plans to tear up parts of the protocol in a bid to address unionist concerns in Northern Ireland. In a tweet after the call, Mr Sefcovic said “the teams will meet soon”, raising hopes in some quarters for progress in talks between the two sides. Mr Sefcovic called it a “good conversation”, adding: “Both sides agree to seek solutions around the Protocol, to bring predictability and certainty to people in Northern Ireland.” He said the EU was “committed to joint efforts”, adding: “The teams will meet soon. James and I will stay in touch.” Mr Smart, who has only been in the role for a few weeks, had similarly warm words after the call, which is understood to have included discussions of both protocol and other matters. Another call between them could take place again in a few weeks. Maryam Zakir-Hussain October 1, 2022 03:15 1664586900
ICYMI- The petition calling for an early general election passes the 100,000 required for parliamentary consideration
More than 100,000 people have signed a government petition calling for an immediate general election “to end the chaos of the current government”. The number of signatures means that the threshold required for the proposal to be considered for debate in parliament has now been passed. The report was launched ahead of Kwasi Kwarteng’s mini-Budget on Friday, which then sent the pound to a record low against the dollar, prompting a rare intervention by the IMF and the Bank of England. My colleague Thomas Kingsley reports:
The petition calling for an early general election is approved for consideration in parliament
The motion will now be considered for debate Maryam Zakir-Hussain October 1, 2022 02:15 1664583300
The energy price cap comes into effect
The government’s energy price cap to protect households and businesses from the worst effects of soaring oil and gas prices comes into force on Saturday. Under the energy price guarantee – which caps the unit price paid for electricity and gas – it means the annual bill for a typical household in England, Scotland and Wales will remain at around £2,500 for the next two years . A similar scheme will operate in Northern Ireland. The government said that without action, energy bills were expected to reach £3,500 from October, rising to as much as £6,500 next year. Households will also see the first installment of the £400 energy bill support scheme on their October electricity bill. The discount will be applied automatically every month in six installments between October and March 2023. Businesses, charities and public sector organizations will also be protected for the next six months. Liz Truss said: “Livelihoods and businesses were at stake. The government’s energy support caps the price they pay for gas and electricity, protects them from huge bill hikes and is also expected to curb inflation. “The cost of inaction would be enormous.” Maryam Zakir-Hussain October 1, 2022 01:15 1664580408
Liz Truss admits her plans have caused “disruption” to the UK economy
Prime Minister Liz Truss said her economic plan meant “disruption” in the short term. Writing in The Sun, Ms Truss pledged to “do things differently”. He said: “We need to get things done in this country faster. So I’m going to do things differently. It involves difficult decisions and involves disruption in the short term.” “Not everyone is going to like what we’re doing,” he continued, “but I want to reassure the public that the government has a clear plan that I believe is right for the country.” Echoing her chancellor’s op-ed in the Daily Telegraph, Mrs Truss said: “Next month we will set out how we will reduce the debt in the medium term.” (PA Wire) Holly Bancroft October 1, 2022 12:26 AM
