Truss and Hunt to oversee protracted recession, EY Item Club forecasts October 17, 2022 The UK is on course for a long recession that will last from this winter through to next summer, underscoring the tough challenge facing prime minister Liz Truss and her new chancellor Jeremy Hunt. Rising inflation compounded by higher interest rates will force the economy into reverse in the current quarter until the summer of [...]
Bank of England to launch gentler but still record rate rise after mini budget U-turns October 16, 2022 The Bank of England can marginally take its foot off the accelerator after prime minister Liz Truss U-turned on key aspects of her tax cutting mini budget, but will still launch the biggest move in its 25 years of independence, City economists are betting. The monetary policy committee (MPC) is set to lift borrowing costs [...]
Truss and Kwarteng were ‘gamblers in a casino’ with UK economy, says Labour October 15, 2022 Prime minister Liz Truss and former chancellor Kwasi Kwarteng “behaved like two gamblers in a casino” over the UK economy, shadow chancellor Rachel Reeves has said today. Kwarteng was yesterday ousted by the new prime minister, making him the second shortest-running chancellor in the UK’s history. Succeeding Kwarteng is Jeremy Hunt, who this morning [...]
Analysis: Truss can’t buck the markets October 14, 2022 Around eight minutes is how long prime minister Liz Truss today allocated to explain why she sacked her chancellor for implementing her tax cuts and signed off her second mini budget U-turn. She clarified neither. She answered four questions and committed to her “mission” to boost growth in the UK at a Downing Street press [...]
Even a complete reversal of the mini-budget won’t fill the giant fiscal hole created October 14, 2022 In August, we were promised a new Budget under the new premiership of Liz Truss. In September, it was downgraded to a mini-Budget when the Government decided not to ask the independent Office for Budget Responsibility (OBR) to mark its homework, or set out a new economic outlook. The market fallout from this disastrous decision [...]
Liz Truss U-turns on mini budget plans to reverse corporation tax hike October 14, 2022 Liz Truss signed off another U-turn today, rolling back on plans to reverse corporation tax rising to 25 per cent from 19 per cent. The move marks a second embarrassing climb down from the government’s tax cutting mini budget, which was characterised by Truss and former chancellor Kwasi Kwarteng as their blueprint for growth. Financial [...]
Liz Truss appoints Jeremy Hunt as chancellor after Kwarteng sacking October 14, 2022 Jeremy Hunt has been appointed as the new chancellor after prime minister Liz Truss sacked Kwasi Kwarteng today following weeks of market turmoil triggered by last month’s mini budget. Hunt is the fourth chancellor this year. According to bookmaker Betfair, Truss is now odds on to step down as prime minister. Kwarteng wrote to Liz [...]
Trade minister says Truss ‘deserves the confidence of the country’, as PM announces press conference October 14, 2022 Newly-appointed trade minister Greg Hands has come out fighting for prime minister Liz Truss, saying she “deserves the confidence of the country”, as Liz Truss announces a press conference today at 2pm. The cabinet official defended the embattled resident of Number 10 who is facing the prospect of an embarrassing U-turn on corporation tax. It [...]
UK borrowing costs tank as mini budget U-turn rumours gather pace October 14, 2022 UK borrowing costs fell sharply today driven by chancellor Kwasi Kwarteng and prime minister Liz Truss reportedly set to U-turn on more parts of their mini budget. The chancellor has today cut short his trip to the International Monetary Fund’s Washington meetings to hold emergency talks with Truss in London. Rumours of a second U-turn [...]
Kwarteng returns from US early for crisis talks with Truss amid speculation of U-turn and a Tory coup October 14, 2022 Kwasi Kwarteng is to cut short his visit to the United States, to hold crunch talks with the Prime Minister before an expected mini-budget U-turn. The embattled finance chief left the International Monetary Fund gathering and headed home overnight, following a fiery briefing with journalists. This comes as The Times reported that a group of [...]