Liz Truss must hold her nerve as the world tips into a calamitous recession

For the past 25 years, and especially since the financial crisis, the global economy has taken a disastrous wrong turn for which we are about to pay a hideous price. In one of the gravest intellectual errors since communism, many of the world’s cleverest people thought they had discovered the secret to perpetual prosperity. Forget … Read more

London politics LIVE: Kwasi Kwarteng facing Tory backlash as Bank of England steps in to stabilise markets

C hancellor Kwasi Kwarteng faced a growing revolt on Wednesday as a senior Tory MP slammed the “inept madness” in his mini-Budget which sent the pound plunging. After an emergency intervention by the Bank of England to protect Britain’s financial stability, Simon Hoare MP tweeted: “In the words of Norman Lamont on Black Wednesday: “today … Read more

What the falling pound means for your wallet

Further price rises in the UK could occur for future launches, should the dollar maintain or increase its strength. Prices that companies have to pay for essential ingredients will also climb, pushing higher costs on to consumers. Paul Davies, chief executive officer at Carlsberg Marston’s Brewing Company, suggested the fall of the pound may cause … Read more

Keir Starmer accused of lacking the ‘fight’ to reverse Tory tax plans

Sir Keir also faces a backlash from MPs on the Labour Left at this year’s party conference, which began on Sunday in Liverpool. Richard Burgon, who sat in Jeremy Corbyn’s shadow cabinet, said: “We must never take any voters for granted. When people are standing up to the policies of this government, we must stand … Read more

Scottish fund managers and US bankers to flock to London as Kwarteng fires up the City

Meanwhile the tax disparity has sparked consternation in Scotland about the effect on Edinburgh, the major financial centre north of the border. Benny Higgins, a Scottish banker and former business adviser to Nicola Sturgeon, said: “A 1p gap may be seen by me and my peers as tolerable and understandable, but a 6p gap would … Read more

Tories to rebel against Liz Truss if pound falls below the dollar

“This Budget will live or die not on what the electorate think, not on what Opposition politicians think, not even what Conservative politicians think,” they said. “It is the global markets’ response to what looks like very risky behaviour from our Government.” They added: “The Bank of England is being backed into a corner. “If … Read more

Armed Forces to grow thanks to £52bn spending boost

Mr Wallace continued: “Without the change, we were heading to below 2 per cent. But on current forecast, that’s roughly a defence budget of £100 billion in 2029-30. We’re currently on £48 billion. So that’s the difference. In eight years, that’s a huge amount. “What we have to work through is how we get there. … Read more

Liz Truss plans to cut taxes further in the new year

Those familiar with discussions say the Treasury believes lifting the lifetime allowance on pension pots could encourage doctors, police officers and highly paid nurses to remain in work. Under the current system, savers are forced into paying 55 per cent tax on pension pots valued at more than £1 million, prompting many to retire instead in … Read more

Mini-budget latest LIVE: Kwasi Kwarteng set to announce tax cuts for millions

K wasi Kwarteng has unveiled a mini-budget that delivers billions of pound worth of tax cuts – including a surprise move to scrap the 45% top rate of income tax paid by the UK’s wealthiest. The Chancellor announced sweeping moves intended to rev up the economy in the eagerly-awaited “fiscal event” on Friday morning. The … Read more

Kwarteng warns Bank of England over blaming Ukraine war for inflation

Kwasi Kwarteng has issued a warning to the Governor of the Bank of England, as he vows in Friday’s mini-Budget to break the “cycle of stagnation”.  The Chancellor told Andrew Bailey that claims that near double-digit inflation was mainly driven by the war in Ukraine were less credible now that the Government had taken action … Read more