Chancellor Kwasi Kwarteng has continued to defend his mini-Budget, insisting the country had “no other choice”.
He also said that his November statement would contain a “commitment to spending discipline” as he promised that next month’s update “will set out a credible plan to get debt falling as a share of GDP in the medium term.”
“Not all the measures we announced last week will be universally popular. But we had to do something different. We had no other choice,” he wrote in the Daily Telegraph on Saturday.
It comes after Mr Kwarteng unveiled a string of tax cuts last week in a fiscal statement that was not accompanied by OBR forecasts. The forecaster said it had offered to prepare a draft for the new chancellor in time for the mini-budget but it was not taken up.
Meanwhile, the S&P ratings on the UK has now changed their outlook from stable to negative this evening.
The S&P calculated the government’s deficit will widen by an average 2.6 per cent of GDP annually through 2025.
Kwasi Kwarteng to keep expert OBR Budget verdict secret for nearly two months
An expert watchdog’s verdict on the tax-slashing mini-Budget will be kept secret for nearly two months after the chancellor refused to publish it.
Kwasi Kwarteng is defying calls, including from Conservative MPs, to reassure markets by revealing the official forecast of how his dash for growth will affect the economy.
After an unprecedented emergency Downing Street meeting on Friday, the Office for Budget Responsibility (OBR) said its initial findings would be on the chancellor’s desk within a week.
Our deputy political editor Rob Merrick has more:
Chancellor resists calls for ‘reset moment’ for economy despite OBR promising forecast next Friday
The S&P ratings on the UK changes their outlook from stable to negative this evening
The S&P ratings on the UK has now changed their outlook from stable to negative this evening.
The change comes as a result of the new government’s mini-Budget, as they calculated the government’s deficit will widen by an average 2.6 per cent of GDP annually through 2025.
The S&P said: “We have revised our outlook on the UK to negative from stable and affirmed the ‘AA/ A+’ ratings.”
Truss admits £45bn mini-budget tax-cuts did cause disruption
Liz Truss has admitted chancellor Kwasi Kwarteng’s mini-budget caused “disruption” but insisted they were right to act to get the economy moving and to protect families from soaring energy bills.
As Tories prepared to head to Birmingham for their annual conference, the Prime Minister warned the country faced a “difficult winter” ahead as she indicated she had no plans to reverse her tax-cutting agenda.
“I recognise there has been disruption but it was really, really important we were able to get help to families as soon as possible,” she said in a pooled interview with broadcasters on Friday.
“This is going to be a difficult winter and I am determined to do all I can to help families and help the economy at this time.”
Her comments came at the end of a tumultuous week which saw the pound slump to an all-time low against the dollar and the Bank of England forced to spend billions buying up government debt to prevent a collapse of the pensions industry.
Simon Clarke admits government had ‘an uncomfortable week’ but defends PM
Levelling up secretary Simon Clarke has admitted it has been an “uncomfortable week” for the government, but said prime minister Liz Truss is “astonishingly resilient” and is “doing what she believes is right”.
An an interview with The Times, Mr Clarke said: “If I was to describe one word for Liz at the moment it is purposeful. She knew, and this was certainly something we discussed during the summer, that this would not be a comfortable process.
“(She knew) particularly early on, there would be real potential unpopularity to be courted in seeking to say things and do things, which weren’t going to be easy or quick wins. Frankly, she is doing what she believes is right. And I think she’s enjoying having the chance to do that.
“She’s obviously, you know, carrying pressures, which most of us would find pretty crushing. But she’s clear in her own mind and her conscience is clear that this is the right thing to do.”
Simon Clarke
(PA Archive)
Commons sleaze watchdog faces ‘outrageous’ claim she is letting off MPs to get peerage
A Tory MP has come under fire over an extraordinary claim that the Commons sleaze watchdog is seeking a peerage in return for letting corrupt MPs off the hook.
The Leicestershire North West MP told Ms Stone two weeks ago he was “distressed” to have heard there were “advanced plans” to ennoble her for reaching “the right outcomes” in political corruption inquiries.
Tory MP Andrew Bridgen admits the rumour is unsubstantiated and likely to offend
Simon Clarke said he is committed to ‘spending discipline'
Simon Clarke hinted at spending cuts in his interview with The Times, with the former chief secretary to the Treasury saying he was committed to “spending discipline”.
“I do think it’s very hard to cut taxes if you don’t have the commensurate profile of spending and the supply side reform,” he said.
“If we’re adopting this plan, which I think is exciting and fundamentally addresses the competitiveness issue, the rest of the piece needs to move in tandem. We are privileged to deal with very large budgets. My experience as CST is that there is always something you can do to trim the fat.”
Mr Clarke said the country had failed to build the homes it needs since the days of Harold MacMillan, who was prime minister 60 years ago.
“The fact the green belt is larger today than it was when Margaret Thatcher came to power is an extraordinary state of affairs. This country has got issues with housebuilding.
“But we also need to protect the spaces that people love and to avoid a sense that the Government is threatening the very things that make communities nice places in which to live.”
Simon Clarke says PM is ‘doing what she believes is right'
Simon Clarke MP has said Liz Truss is “doing what she believes is right” for the financial market.
The secretary of state for Levelling Up, Housing and Communities said there will have to be sigificant cuts in public spending, telling The Times that the West has been libing in a “fool’s paradise” for too long.
He said: “My big concern in politics is that western Europe is just living in a fool’s paradise whereby we can be ever less productive relative to our peers, and yet still enjoy a very large welfare state and persist in thinking that the two are somehow compatible over the medium to long term.”
Irish premier says there is ‘genuine willingness’ all around to resolve NI protocol dispute
Irish premier Micheal Martin has said that he believes there is a “genuine willingness” on all sides to resolve the dispute around the Northern Ireland protocol.
“I think there is genuine willingness to make every effort to resolve this issue by negotiation,” he told reporters at the Fianna Fail Ard Fheis in Dublin.
“That said it will be difficult. I think what is important is that a process is entered in to that will facilitate in negotiated resolution for the issue.”
Barristers to vote next week on whether to end strike action- part two
It is understood the move requires changes to the digital system used by the Legal Aid Agency to make payments and, while officials are confident there is a solution available, they fear it may be difficult and expensive.
The pay offer came after High Court judges ruled that delays to criminal trials affected by the ongoing strike may not be a good enough reason to keep defendants in custody on remand if the dispute continues beyond the end of November.
There were fears the proposed deal could also prompt a walkout by solicitors after the Law Society of England and Wales branded it “short-sighted” and warned the criminal justice system will “collapse” unless the Government funds all parts equally.
The body representing solicitors said it was considering advising members not to undertake criminal defence work and would meet with ministers “urgently”.
President Stephanie Boyce has since said: “We will continue to push for a fair deal for solicitors for the crucially important work they carry out”, adding: “We will insist on further urgent discussions next week.”
Barristers to vote next week on whether to end strike action- part one
Barristers will be asked to vote next week on whether to end strike action after a pay offer from the government.
A ballot for Criminal Bar Association (CBA) members is due to open on Tuesday and close on Sunday, a spokesman said. A decision will be announced on Monday October 10.
The body agreed to ballot members again after talks with new Justice Secretary Brandon Lewis in which he decided to propose further reforms to Government-set fees for legal aid advocacy work, the Ministry of Justice (MoJ) said.
The offer represents “further investment of £54 million in the criminal bar and solicitors”, according to the department.
Criminal barristers in England and Wales are taking part in a continuous walkout after their row with the Government over fees and conditions intensified.
Prior to that, they were striking on alternate weeks and refused to carry out certain types of work.
There had been anger that a planned 15% fee rise barristers are due to receive from the end of September - meaning they will earn £7,000 more per year - would only apply to new cases and not those already sitting in a backlog waiting to be dealt with by the courts.
But now the MoJ has said the fee increase will apply to the “vast majority of cases currently in the crown court” as well as provide a pay rise for solicitors, with further measures due to be announced in the coming weeks.
This is despite the department previously saying it had “repeatedly explained” to the CBA that backdating pay would require a “fundamental change” in how fees are paid, adding: “That reform would cost a disproportionate amount of taxpayers’ money and would take longer to implement, meaning barristers would have to wait longer for payment.”
