Liz Truss blames Britain’s independent financial watchdog after failing to quell panic in financial markets or bolster support from Tory lawmakers for her radical economic plan I am planning to hold an emergency meeting with Mr.
In a highly unusual move, the prime minister will meet with Office of Budget Responsibility (OBR) Prime Minister Richard Hughes and Prime Minister Kwasi Kwarten on Friday to present the first draft of the full fiscal forecast next week.
A government insider said the OBR meeting was “after breaking things” after last week’s announcement of a drastic tax cut sparked investor panic over the future health of the UK economy and caused a sharp drop in values. It was like trying to read a manual.” A stronger pound and higher government borrowing costs.
Truss received an urgent call from a special committee at the Treasury Department to bring forward the government’s financial statements, which are not due until Nov. 23, by at least a month, and release growth projections as soon as possible to ease tensions. I am facing a request for On Thursday night, OBR confirmed that it may have been able to produce the forecast in time for the mini-budget, but was not asked to do so by Kwarteng.
Mel Stride, chairman of the Treasury Task Force, told The Guardian there was a way out for the government in the current economic climate, but added: There is much to be done. This is a big challenge. “
The Guardian understands that the Truss will use the meeting to discuss dramatic economic and financial developments since March, when OBR last released its growth projections. Kwarteng will continue to communicate with institutions on their forecasting process prior to the release of the next numbers. Conservatives last night after Truss ruled out U-turns from mini-budgets and YouGov’s shocking YouGov poll gave Labor a record 33-point lead in shocking YouGov poll, trailing Tories by 21% Alarm spread throughout. just 4 days ago.
Only 37% of Tory voters in 2019 said they would vote Conservative. Veteran Conservative MP Sir Charles Walker said the Conservative Party “will cease to exist as a party” if the poll lead repeats itself in the election.
After days of silence during a Labor Party meeting in Liverpool, Truss claimed her economic policies were on the right track despite the urgent need for intervention from the Bank of England, local BBC radio We embarked on a round of interviews.
In his first public statement since warnings from the International Monetary Fund and the World Bank’s intervention to prevent a crackdown on pension funds, Truss said he was “ready to make difficult decisions,” even under pressure. He said he would not change his approach.
After hearing several listeners about their financial concerns, she argued that people would feel the benefits in the long run. “Of course there will always be those who oppose certain measures. And it’s not always easy. But we have to do it.”
Repeatedly pressed by presenters why they cut taxes primarily for the wealthy, she rejected the idea that they were wrong. “Some of these decisions are difficult ones,” she told BBC Radio Lancashire “Some people don’t like it. But what I couldn’t do was let the situation drift. That’s why my government took urgent action.”
In a particularly awkward exchange on BBC Radio Stoke, there was a long silence when she was asked about an increase in mortgage payments.
The shadow prime minister, Rachel Reeves, claimed the interview “made this dire situation worse” and urged the prime minister to summon parliament ahead of the Tory meeting.
“This is a serious situation in Downing Street and a direct result of the Conservative government’s reckless actions,” she said. If the priority continues, Tory MPs must join Labor in calling for a parliamentary recall and overturning this kamikaze budget.”
However, Kwarteng insisted on a visit to Darlington, claiming the government was “sticking to its growth plan” and “absolutely essential” to reset the debate, citing his ideological approach. His persistence caused concern among Tory MPs.
Before the decisively enthusiastic party convention, Mr. Kwarteng sent an undisclosed memo to Tory lawmakers saying they “need your help.” In the message, the prime minister said he understood their “concerns” about the mini-budget, but he appealed to them public support: “Only Labor will split and win,” he said. wrote.
He justified his tax cuts and borrowing plan to keep British people’s living costs down, claiming he was “going to show the market that our plan is sound”.
His chief secretary, Chris Philp, was accused of echoing “Crisis, what crisis?” In the winter of the 1970s, James attributed his Callahan remarks after being asked on LBC radio. Or was this all part of Friday’s plan?” He replied: “I do not accept the word ‘crisis’ at all.”
But the repercussions from the Bank of England’s £65bn bailout of the UK’s final payroll pension fund on Wednesday were felt across international financial markets, with stocks plummeting across Europe, the US and Asia.
The FTSE 100 fell 160 points to 6,858, as did the US Top 500 company values, which fell 2.4%. Economists and investor groups said the lack of stability in previously robust financial centers like the UK should be a warning against excessive risk-taking by governments and financial institutions.
UK banks are withdrawing mortgage products at an unprecedented pace, with the average two-year fixed-rate mortgage price exceeding 5%. More than 40% of his available mortgages have now been withdrawn from the market, and providers such as Santander, Nationwide and HSBC are repricing loans.
Homebuilders were hit by a slump in the stock market in the face of the prospect of rapidly rising mortgage costs, but with house prices likely to fall, so too will the value of UK retailers. fell, reversing two years of double-digit gains.
Mark Carney, former governor of the Bank of England, has accused the Truss government of “undermining” the country’s economic system and working “over purpose” with Threadneedle Street. “Unfortunately, we only have a partial budget, and in the context of a tough global economy, a tough financial market position, and working with the World Bank, we have had very dramatic changes in the financial markets.
“What remains outside the budget [are] Real measures to drive accelerated growth. You have to add the numbers. “
Next chief executive and Tory fellow Simon Wolfson warns the UK could be headed for a second cost-of-living crisis next year as the pound’s depreciation drives further price gains did.
“The devaluation of the pound is likely to prolong inflation, even if factory prices ease,” he said. “We seem set to face two cost-of-living crises: supply-side-led pressure this year. “
A Treasury spokesperson said: , agricultural productivity and digital infrastructure.
“The Prime Minister has asked the OBR to prepare economic and fiscal forecasts to be released on 23 November. It is based on our commitment to reduce.”