A Treasury minister has denied the government’s mini-budget has caused an economic meltdown, as a senior figure in government finally spoke publicly about the market turmoil.
With prime minister Liz Truss and chancellor Kwasi Kwartengsilent on the tumbling pound and interest rate fears in recent days, financial secretary Andrew Griffith was presented to the media to answer questions on their behalf.
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It came as the Bank of England has launched an emergency UK government bond-buying programme to prevent borrowing costs from spiralling out of control, and followed the International Monetary Fund urging the UK to reverse a massive £45 billion tax cut funded by government borrowing.
On Wednesday, Griffith was asked by Ed Conway of Sky News if the government took responsibility for “the storm in the financial markets” since last Friday’s “fiscal event”.
In response, Griffith said: “No, we both know we’re seeing the same impact of Putin’s war cascading through things like the cost of energy, some of the supply side implications of that. And that’s impacting every major economy. Every major economy you are seeing interest rates going up as well. Every major economy is dealing with exactly these same issues.”
Griffith welcomed the “timely” intervention by the Bank of England in the markets, adding: “What the chancellor and I are focused on is delivering that economic growth plan.”
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Treasury financial secretary, Andrew Griffith says the current economic issues are being experienced in “every major economy” due to Putin’s war, not the mini budget.
While the Tories are denying a self-inflicted wound, some are happy to blame others.
Tory peer Daniel Hannan was mocked after he blamed the economic on the prospect of Keir Starmer becoming prime minister.
He said a Labour victory at the next election would lead to “higher taxes, higher spending, and a weaker economy”.
Meanwhile Andrew Lilico, a right-wing economist supportive of the tax cuts, hit out at the IMF as a “left-wing body” after its rare criticism of a developed country as the lender of last resort highlighted the negative impact of the tax cuts.
The scale of the crisis in the markets has led to unease in some quarters of the Tory party, while Labour has joined calls for parliament, currently on a conference recess, to be recalled.
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“The government has clearly lost control of the economy,” Keir Starmer told reporters in Liverpool.
It is a highly unusual move that will see the Bank buying long-term government debt to tackle a surge in the cost of borrowing, which it said risked “contagion” to households and businesses.
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The announcement has prompted calls for the prime minister to address the public about her decisions.
Truss has not spoken publicly in the six days since her government announced the biggest tax cuts for 50 years.
Government sources say there are no plans for Liz Truss to comment publicly today on the turmoil in financial markets
One Twitter user said: “Genuinely where the hell is Liz Truss? You’d of thought at least a written statement would of gone out by now to someone in the press to calm things down at least surely?”
GB News presenter Isabel Webster Tweeted: “Where is Liz Truss?”
“What the government needs to do now is recall parliament and abandon this budget.”
– Labour leader Keir Starmer
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Comedian David Baddiel added: “Where *is* Liz Truss? We appear to be in a crisis. Normally, in that situation, a country’s leader says…*something*. Even if it’s keep calm and carry on.”
Former Blue Peter presenter Simon Thomas added: “Whilst the economy burns like a skip fire, has anyone seen or heard from Liz Truss? She was highly visible during her leadership tour; but now she is leader, where the hell is she?!
“Where is her leadership? Cooling off in Boris’s fridge? To remain quiet is a dereliction of duty.”
It comes as Labour, the Lib Dems and SNP all called for parliament to be recalled amid the “rapidly deteriorating economic crisis”.
Labour leader Keir Starmer told Sky News: “The government has clearly lost control of the economy.
“What the government needs to do now is recall parliament and abandon this budget.”
UK in grip of rapidly deteriorating economic crisis. Emergency intervention by @bankofengland to reduce damage of UK gov own policies extraordinary. Commons should be immediately recalled (where even is PM?) & as at least an initial symbol of sense, top tax rate abolition dumped
Lib Dem leader Ed Davey said Truss had 24 hours to fix the “economic disaster” and added: “Every hour the prime minister and chancellor hide from this economic nightmare increases the chances of interest rates spiralling out of control and people losing their homes.”
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There are mounting concerns about a mortgage crisis as the Bank prepares to hike interest rates.
Lenders have withdrawn dozens of products as they struggle to adjust to the expectations of higher costs.
The Labour Party has also called on the chancellor to make an “urgent statement” on how he is going to fix the “crisis that he has made”.
The International Monetary Fund has made a stunning intervention over the state of the UK economy after the Tory mini-budget caused financial turmoil.
In the group’s first public reaction to Britain’s growing crisis, the IMF said on Tuesday that it would urge the UK to “re-evaluate” a massive £45 billion tax cut funded by government borrowing as it does “not recommend large and untargeted fiscal packages” given soaring inflation across the world.
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It went on to warn the measures will likely increase inequality, and urged more action to hep those affected by the energy crisis and rising cost of living.
What is the IMF? Why do their comments matter?
The Washington DC-based “lender of last resort” has helped bail-out struggling nation states around the world for more than 70 years.
It is extremely rare for the organisation to intervene in a developed country’s economic policy. Britain was forced to apply for an IMF loan of nearly $4 billion during the 1976 financial crisis, with negotiators for the group insisting on deep cuts in public expenditure at the time.
IMF officials have warned repeatedly in recent months of the need to carefully calibrate fiscal and monetary policy as central bankers raise interest rates across the globe to get inflation under control.
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Against a backdrop of the pandemic, Russia’s invasion of Ukraine and rising global interest rates, the organisation’s lending has hit a hit a record high at $14billion, the FT reported. Zambia and Sri Lanka, which both defaulted in the pandemic, are currently negotiating IMF bailouts as part of efforts to restructure debts.
What is it responding to?
The IMF comments followed the Tories unveiling a controversial mini-budget on Friday that was designed to reboot growth – a move that saw the pound slump to a record low against the dollar by Monday.
The sell-off of sterling, as well as jitters across the financial markets, has led to fears the Bank of England is certain to raise interest rates dramatically to save the currency, which in turn is likely to spell bad news for homeowners.
Chancellor Kwasi Kwarteng responded by saying he would set out medium-term debt-cutting plans on November 23, alongside forecasts from the independent Office for Budget Responsibility of the full scale of government borrowing.
What did the IMF say?
In response to a query from Reuters after the British pound hit an all-time low amid spiking market concerns, the IMF spokesperson said: “We are closely monitoring recent economic developments in the UK and are engaged with the authorities.
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“Given elevated inflation pressures in many countries, including the UK, we do not recommend large and untargeted fiscal packages at this juncture, as it is important that fiscal policy does not work at cross purposes to monetary policy.”
The IMF understands that Britain’s “sizable fiscal package” was intended to help residents deal with higher energy prices and to boost growth via tax cuts and supply measures, but such measures could put fiscal policy at cross purposes with monetary policy, the spokesperson said.
Kwarteng’s fresh budget would provide an “early opportunity for the UK government to consider ways to provide support that is more targeted and re-evaluate the tax measures, especially those that benefit high-income earners”, the spokesperson added.
What has the reaction been?
The BBC’s economics editor Faisal Islam: “The IMF telling a G7 member and major shareholder to ‘re-evaluate’ their signature economic policy because it ‘does not recommend’ such packages and will ‘increase inequality’… suggests profound international concern in finance ministries about a global impact of UK crisis.”
This the IMF telling a G7 member and major shareholder to “reevaluate” their signature economic policy because it “does not recommend” such packages and will “increase inequality”… suggests profound international concern in finance ministries about a global impact of UK crisis
This from IMF is humiliating for Kwarteng and Truss: “Given elevated inflation pressures in many countries, including UK, we do not recommend large untargeted fiscal packages at this juncture, as it is important fiscal policy does not work at cross purposes to monetary policy”.
An economist and former interest rate-setter has hit out at the government’s “raging incompetence” as he questioned whether Liz Truss and Kwasi Kwarteng would survive the economic turmoil created by their mini-budget.
David “Danny” Blanchflower, who sat on the Bank of England’s monetary policy committee for three years, said the prime minister and chancellor’s “credibility is completely trashed” within days of taking office.
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His outspoken comments followed the Tories unveiling a massive £45 billion tax cut funded by government borrowing on Friday – a move that saw the pound slump to a record low against the dollar by Monday.
The sell-off of sterling, as well as jitters across the financial markets, has led to fears the Bank is certain to raise interest rates dramatically to save the currency, which in turn is likely to spell bad news for homeowners.
Appearing on the Sarah-Jane Mee Show on Sky News, Blanchflower referenced Kwarteng’s plan to explain how he will get debt falling in a medium term fiscal plan to be published on November 23, as he said the uncosted government plans mean Truss and the chancellor “just don’t look credible”.
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He added: “So the question is, if you if you’re the chancellor of the exchequer and what you’ve done is you’ve stood up and you crashed the markets – you’ve crashed the bond market, you’ve crashed the foreign exchange market, the stock market dropped, the housing market’s in trouble – and you created a giant recession as the Bank of England has to raise rates … your credibility is completely trashed.
“And what’s the prime minister going to say – well, at the moment she appears to be hiding – but the questions journalists like you and (Sky News journalists) Ian King and Ed Conway and others are going ask is, what are you going to do, it’s all completely failed, hasn’t it? They told you it was going to fail, and it has now, what are you going to do?
“And obviously the question then is, politically, is she going to survive the month? Does she get to – and does he get to – this statement in two months time, because presumably politically they’ve created a disaster. And there’s even an issue: could you get to get this through the House of Commons? Unclear.
“I have never seen anything like this. I’ve been an economist for 50 years. I went through the great recession, and I have never seen such a raging incompetence ever.”
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After two days of big changes, the pound settled down on Tuesday, trading at around 1.08 dollars for most of the day, deviating only briefly with a two cent drop.
London’s top stock index, the FTSE 100, was also subdued for most of the day.
The FTSE closed the day down 0.5% on Tuesday afternoon while gilt yields, reflecting the cost of government borrowing, rose 1.6%, more than a quarter higher than just a week ago.
But with some analysts predicting the base rate – currently standing at 2.25% – will have to rise to as high as 6% next year, some lenders began withdrawing some mortgages amid uncertainty over how far they will rise.
The Labour leader gave a confident and assured pitch not only to the party faithful, but to the country at large — to a Britain that he described as “all at sea”.
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Starmer’s speech was designed to demonstrate that he was listening and that Labour was ready to step up where the Tories had stepped down.
Channelling the late Queen Elizabeth’s dedication to duty, he said it was now time to “turn our collar up and face the storm”.
Here are five things we learned from Starmer’s conference speech.
Labour is capitalising on Tory woes
Starmer said there were “two sides of Britain”: one of order and unity characterised by the queue to see the Queen’s lying-in-state, and one where a “cloud of anxiety hangs over working people”.
Starmer firmly pinned the blame for such anxiety on the Tories, whom he portrayed as reckless vandals: “They haven’t just failed to fix the roof. They’ve ripped put the foundations, smashed through the windows and now they’ve blown the doors off for good measure.”
“The government has lost control of the British economy – and for what?” he said. “They’ve crashed the pound – and for what?
“Higher interest rates. Higher inflation. Higher borrowing. And for what?
“Not for you. Not for working people. For tax cuts for the richest one per cent in our society. Don’t forget. Don’t forgive.”
The sense of crisis provides Labour with an opportunity to play the adult.
“At moments of uncertainty like this we must provide clear leadership,” he went on. “We must stand with working people. Meet their ambitions for real change. Walk towards a better future. And build a new Britain, together.”
While the Tories had “failed to prepare” for the economic crisis the UK now finds itself in, Starmer said he was looking to the future by transitioning to a green economy that would give “British power to British people”.
“Green and growth don’t just go together – they’re inseparable,” he said.
“The future wealth of this country is in our air, in our seas, in our skies. Britain should harness that wealth and share it with all.”
The phrase “British power to British people” was not only literal but metaphorical.
Starmer redefined Labour as the party of aspiration, accusing the Tories of failing to understand how they had “choked it off for working people”.
He recalled a meeting with a woman in Grimsby who told him: “I don’t just want to survive; I want to live”.
“Conference, I want to look her in the eyes after five years of a Labour government and I want to know that she, and millions of people like her, are not just surviving, they’re thriving.”
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Taking on the Tories’ turf
The Tories have long been regarded as the party of home ownership, but Starmer showed he was serious about reclaiming that title with a pledge to guarantee 70 per cent home ownership.
He said he would bring in a new mortgage guarantee scheme to help real first-time buyers onto the housing ladder.
“My message is this: if you’re grafting every hour to buy your own home Labour is on your side,” he said. “Labour is the party of home ownership in Britain today.”
Country first, party second
Labour has long been criticised for been inward-facing rather than outward- facing, constantly distracted by internal divisions and fights.
If Starmer’s first in-person conference speech was marked by addressing the active issues within his own party, this one will be remembered for how little the Labour Party featured in the leader’s speech.
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In a sign of the change the party has gone through under Starmer’s leadership, issues such as the problem of anti-Semitism and Jeremy Corbyn’s ambivalence to Nato, were mentioned as problems past, not present.
Labour’s moment?
Tony Blair famously described the Labour Party as the “political wing of the British people” in his conference speech in 1997 — the year that Labour would go on to win the general election by a landslide.
Starmer said that like 1945, 1964, 1997, “this is a Labour moment”.
Indeed, the party would be hard-pressed to find a moment more opportune to rebuild from the rubble.
A Conservative peer and former chief Brexit negotiator has said he doesn’t think “anything has gone wrong” after a day of turmoil on the markets which saw the pound briefly slump to an all-time low.
Lord David Frost described the dramatic events since Friday’s mini-budget as “unwarranted” and an “over-reaction” as the Bank of England moved to assure investors it “will not hesitate” to raise interest rates to prop up the value of sterling.
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Chancellor Kwasi Kwarteng’s £45 billion package of tax cuts has prompted a run on the currency that has caused wider fears about the state of the economy.
But Lord Frost, speaking on BBC Radio 4’s PM programme as Kwarteng avoided a public statement, appeared relaxed about the pummelling of the pound.
He said: “Well I don’t think anything has gone wrong actually. Liz Truss promised change, a different economic approach to get us back to growth and away from stagnation and that means a number of things have got to happen.
“Yes, rates have got to go up to get inflation under control, we’re going to have to have lower taxes and fiscal support to get people through this period, we’re going to have lots of structural reform as the chancellor said today and we need to hold down spending in the medium term and that’s coming in November.
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“So I think what we’ve seen in the last few days is (a) unwarranted and a over-reaction approach to some elements of that, you’ve got to look at the total package which is taking the country on a different direction to get us out of stagnation and get us back to growth.”
Such was the market turmoil on Monday there was growing speculation in financial markets that the Bank would make an emergency interest rate rise after it hiked rates only last week to 2.25% from 1.75%.
Instead, with the pound fragile and bond prices still tumbling, Kwarteng issued a statement just before the British stock market closed to say he would set out medium-term debt-cutting plans on November 23, alongside forecasts from the independent Office for Budget Responsibility of the full scale of government borrowing.
The central bank welcomed “the commitment to sustainable economic growth” from Kwarteng and the independent scrutiny that the OBR growth and borrowing forecasts would bring.
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Meanwhile, banks and building societies are withdrawing some of their mortgages from sale.
Three lenders – Halifax, Virgin Money and Skipton Building Society – have so far withdrawn some of their products amid the uncertainty, according to reports.
Kwasi Kwarteng’s tax giveaway for the rich would not have looked out of place in Latin America and could lead to economic meltdown, according to Ken Clarke.
The Tory grandee – who served as chancellor under John Major – said the decision to scrap the 45p tax rate for high earners could send inflation even higher and cause the value of the pound to collapse.
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Kwarteng unveiled a £45 billion package of tax cuts in Friday’s mini-budget, which he said would lead to increased economic growth.
But Clarke, who quit parliament in 2019 after nearly 50 years as an MP, said they would not work.
He told Radio Four’s ‘World At One’ programme: “I don’t accept – I never have, the Conservative party never has – the overall premise of the budget, which is that you make tax cuts for the wealthiest 5 per cent, and it makes them work so much harder, and [there’s a] rush to invest.
“I’m afraid that’s the kind of thing that’s usually tried in Latin American countries without success.
“I do not think you stimulate growth by cutting taxes on the better-off, or taxes on business. If it was so simple, we would have got rid of taxes all together some time ago.
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“What the increased spending power … is going to do is run the risk of further stimulating inflation. And we’re going into a serious inflationary recession this winter.”
Kwarteng is paying for the tax cuts by piling another £70 billion on the national debt, which Clarke said was now too high.
He said: “We’re heading in the Italian direction. That is going to be a problem, a very great problem, in the short term if it leads to a collapse in the pound and the loss of confidence in our economy. We’re going to drive investment away, not attract it.
“I don’t think anybody I was ever in government with would have contemplated a budget like this.”
Kwarteng this morning defended his mini-budget, and suggested more tax cuts were on the way.
He said: “We’ve got to have a much more front-footed approach to growth and that’s what my Friday statement was all about.
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“I think that if we can get some of the reforms … if we get business back on its feet, we can get this country moving and we can grow our economy, and that’s what my focus is 100 per cent about.”
He said: “I do not think that the choice to have tax cuts for those that are earning hundreds if thousands of pounds is the right choice when our economy is struggling the way it is, working people are struggling the way they are and our public services are on their knees. So it is the wrong choice.
“I would reverse the decision that they made on Friday, let’s be absolutely clear about that.”
While she has sought to distance herself from the comparison, there is one thing she does share with her late predecessor: she has taken over as prime minister at a time when Britain’s economy is crumbling and its workforce is more mutinous than ever.
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Angered by an inflation rate of 9.9 per cent that is outstripping stagnant wages, trade unions are organising en masse for industrial action that threatens to take Britain back to the turmoil of the 1970s.
One by one, they are rejecting the government’s single-digit pay offers and organising strike ballots. Collectively, they have said “enough is enough”.
Their resistance sets the scene for a new front in the divisive culture wars in which unions fear Truss will attempt to “crush the enemy within” by bringing in a series of measures that will hamper their ability to take industrial action.
Kwasi Kwarteng, Truss’s new chancellor, confirmed this week the government will bring forward legislation making it harder to go on strike.
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“What we have is a government that seems to be struggling to come up with answers to the cost of living crisis,” says Tim Sharp, senior policy officer for employment rights at the Trades Union Congress (TUC).
“It appears that some in government would like to distract from that with a culture war against the unions.
“We had a leadership contest in which the candidates had to appeal to some of their more ideological members and that’s why we’ve seen the pledges in terms of anti-union action.”
Which unions are striking?
The RMT and Aslef rail unions, the Communication Workers Union (CWU) representing Royal Mail workers and barristers under the Criminal Bar Association (CBA) have all been on strike over pay and working conditions in recent weeks.
Dockhands represented by Unite have also been striking at the port of Felixstowe and are set to do so again in September, in the shadow of the Labour Party conference in Liverpool.
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The National Education Union (NEU), the largest education union in the UK that represents teachers, lecturers and support staff, will open its online preliminary ballot for strike on September 24, before a formal ballot takes place in November.
RMT general secretary Mick Lynch has said Britain could be brought to a standstill by a wave of strikes hitting “every sector of the economy”.
Ian Forsyth via Getty Images
The Royal College of Nursing (RCN), whose members include half a million nurses, midwives, nursing support workers and students, opened a postal ballot for strike action on September 15 that will close on October 13.
If enough members vote for industrial action, it will be the first time in the union’s history that its members in England and Wales go on strike.
The British Medical Association (BMA) has also said it will ballot junior doctor members in England for industrial action if the government fails to restore pay to 2008/09 levels by the end of this month.
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The public needs to be prepared for the havoc such strikes could wreak on their daily lives.
“Every school in the country is going to be shut bringing total chaos,” one union source says. “Tens of thousands of hospital appointments are going to be cancelled.
“This is the price you pay for a Tory government that has slashed public services.”
The tools in Truss’s arsenal
If Truss is looking at how she might limit trade union rights, David Cameron’s Trade Union Act of 2016 might provide some inspiration.
Billed at the time as some of the most “regressive” anti-union legislation in the world, the law brought in measures such as higher thresholds for success in industrial ballots.
It also increased the notice period unions must give to employers ahead of any strike action from one week to two weeks.
In an ordinary union, there must be a 50 per cent turnout for an industrial ballot in order for their results to be legally valid. A simple majority has to vote in favour of strike action for it to go ahead.
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But for workers who deliver “important” public services, not only does the 50 per cent turnout have to be met, the support of 40 per cent of all eligible members must also be attained for the strike action to be legal.
Unions fear that Truss could use a new law to bring in thresholds that are so high that they could make strikes nigh on impossible.
They anticipate that she could also widen the definition of what counts as a public service to include bus drivers and tube drivers, for example, to apply the 40 per cent threshold.
“If she goes in this direction there will be new laws — that’s a fact,” says one union source.
“She’s got a parliamentary majority. You’re not going to stop her legislating.
“If the Tories use an act of parliament to redefine what defines a public service, at a stroke they would cover huge sections of private industry.
“They can make it even more difficult for unions to get through the thresholds. These laws are already the most stringent of anywhere in Europe.”
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A new law to guarantee a minimum level of service on “vital national infrastructure” was a key pledge to come out of the leadership campaign, as was a tax on the strike benefit members receive when they don’t go into work.
Truss also suggested brining in a cooling-off period so that unions can no longer strike as many times as they like in the six-month period after a ballot.
Tim Sharp says the effect of Truss’s plans could be that they make union disputes harder to resolve.
“The industrial action we’ve had has been grassroots driven,” he tells HuffPost UK.
“They risk making industrial disputes harder to resolve. You often see a day of strikes here and there, but if a union is being limited in how often it can take industrial action, then what you could see is longer periods of strike action.”
Another union insider agrees: “If Truss thinks she’s going to shut down the unions she’s got another thing coming.
“She will just create so much anger it increases turnout in the many union ballots currently going on.”
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Workers of the world unite
Criminal barristers are on strike over pay for legal aid work.
Mike Kemp via Getty Images
In the unions, Truss has found herself an opponent that will not go down without a fight.
Sharon Graham, the boss of the Unite union, tells HuffPost UK there will be a “prolonged and fierce resistance to Truss attacking workers’ rights”.
“If Liz Truss thinks we have just been sitting waiting for her anti-trade union laws, she’s wrong,” she says.
“We’re ready. If she puts up the thresholds for legal strike action we’ll employ more organisers to get the vote out. If she taxes strike pay, we’ll take more money from the strike fund to hold the real value of strike pay.
“And if she tries to gag trade unions we’ll find ways to speak out more and more.”
And in a swipe at Truss’s own result in the Tory leadership contest Graham says: “Right now if workers plan strike action 50 per of those who can vote in the strike ballot must vote for the strike to be legal.
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“It’s a bit rich for Liz Truss to be upping the figures in new laws. In her election for leader she only got 47 per cent of Tory members who were entitled to vote.
“If the Tory Party was bound by the same restraints as the unions Truss would not have made the grade for leader. You could not make it up.”
RMT general secretary Mick Lynch said workers could be forced to take “unlawful industrial action” if the government makes it impossible for legal strikes to take place.
He told Sky News: “We’re fast getting to a situation where we’re going to have laws that are as oppressive as those that exist in Russia and China and back in Poland before Solidarnosc came along and took unlawful industrial action to break free of the oppression of the old Soviet bloc an the communist regime.”
The TUC is already preparing its campaign to appeal to the public when the battle begins.
National rallies will take place in Westminster and there will be a tour of town halls, a national day of action and a lobby of parliament.
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The message members have been told to stick to is that Truss plans’ “threaten the right to strike” and are an attempt to distract the public from the burgeoning cost of living crisis.
And crucially, there is the edict to “stay calm: they want us to blow our tops, don’t give them the satisfaction”.
Failing that, the government could find itself in court.
In a sign of the resistance to come, 11trade unions launched legal action against the government on Tuesday over government plans to replace striking workers with agency staff.
They claim the government has broken the Employment Agencies Act 1973 by failing to consult them on the changes and is violating “fundamental trade union rights” protected by Article 11 of the European Convention on Human Rights.
No pain, no gain
For Truss, a protracted battle with the unions could help her forge her reputation with voters, for whom she remains largely unknown.
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According to pollster James Johnson, the co- founder of JL Partners, Truss could win plaudits from the public from sticking to what she thinks is right.
“I don’t think it’s a politically calculated move, I think it comes from a genuine frustration within government,” he says.
“What pays off for Liz Truss is that if they are pursuing what they think is right, even if it doesn’t go down well, that may have a long term effect in popularity in showing that there is a steeliness and sense of inner conviction — and that is what the public do crave.”
By taking such a firm line, she also sets a contrast in voters’ minds between herself and Labour leader Keir Starmer, whom the public still perceive as weak on strikes.
“There are negative views about Starmer because of his position on strike — at first he seemed to back people going out, then he didn’t,” Johnson explains.
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“It reinforces that view that he doesn’t stand for anything, and that is fine if the other leading party is seen like that — but if we get that contrast developing between Truss and Starmer, then he could be in trouble.”
The jury is out on whether Truss can recapture the status of a conviction politician — or whether the turmoil that ensues is so great that it would cancel any benefit that came from taking a stand.
The chief secretary to the Treasury has faced online ridicule after celebrating the rise in the pound – just before it repeatedly dropped to a 37-year low.
He tweeted: “Great to see sterling strengthening on the back of the new UK Growth Plan.”
But once the markets digested what amounted to tax cuts costing up to £45 billion annually, the currency went in reverse.
At its lowest point on Friday afternoon £1 could buy just 1.0896 US dollars – the worst exchange rate for Britons since 1985.
It was a drop of over 3%, and means the pound has lost more than 7% of its value against the dollar in just a month.
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Twitter was in unforgiving mood.
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Appearing on the BBC later, Philp said the markets will see that the government has a “credible and responsible” economic plan
He told BBC Radio 4’s PM programme: “I think when the chancellor sets out his medium-term fiscal plan, which includes getting debt to GDP falling, then I think markets and others will see that we have a credible and responsible plan.”.
He also insisted the government has a “plan” to drive up GDP by 1% on current forecasts every year.
“I have every confidence that the objective we set out, the extra 1%, will be delivered. We’re not hoping, we’ve got a plan to do it.”
Philp rejected the idea that the government has abandoned the cautious approach to the public finances taken by previous Tory administrations.
Using more than £70 billion of increased borrowing, Kwarteng on Friday set out a package which included abolishing the top rate of income tax for the highest earners.
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He cut stamp duty for homebuyers, and brought forward a cut to the basic rate of income tax, to 19p in the pound, a year early, to April, as part of tax cuts costing up to £45 billion annually.
Kwarteng told the Commons tax cuts are “central to solving the riddle of growth” as he confirmed plans to axe the cap on bankers’ bonuses while adding restrictions to the welfare system.
Protesters in Moscow have chanted “send Putin to the trenches” amid widespread disapproval of Russia’s biggest conscription drive since World War Two.
Within hours of president Vladimir Putin ordering a partial mobilisation of reservists on Wednesday, rare protests were reported across the country that led to almost 1,200 arrests.
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Shortly after Putin’s address, Russian media reported a spike in demand for plane tickets abroad as some draft-age men headed for the border.
In the capital Moscow, hundreds of people gathered on the central Stary Arbat street amid heavy police presence. Protesters could be seen chanting “No war”, “Send Putin to the trenches” and “Let our children live” in videos published to social media.
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Putin’s risky order follows humiliating setbacks for his troops nearly seven months after they invaded Ukraine.
The first such call-up in decades heightened tensions with Ukraine’s Western backers, who derided it as an act of weakness and desperation.
Liz Truss accused Putin of “sabre rattling” as the UK prime minister addressed the United Nations General Assembly, aded that the Russian president is desperately trying to justify a “catastrophic failure” in Ukraine.
The total number of reservists to be called up could be as high as 300,000, officials said.
Despite Russia’s harsh laws against criticising the military and the war, protesters outraged by the mobilisation overcame their fear of arrest to stage protests in cities across the country.
Nearly 1,200 Russians were arrested in anti-war demonstrations in cities including Moscow and St Petersburg, according to the independent Russian human rights group OVD-Info.
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As protest calls circulated online, the Moscow prosecutor’s office warned that organising or participating in such actions could lead to up to 15 years in prison.
How many people mouthing off on Twitter would be brave enough to shout “NO WAR!” as they’re being carted off by four Russian policemen? Not many would be my guess. https://t.co/8bSpHWQRbz
Police officers detain a man in Moscow on September 21, 2022, following calls to protest against partial mobilisation announced by President Vladimir Putin. – President Vladimir Putin called up Russian military reservists on September 21, saying his promise to use all military means in Ukraine was “no bluff,” and hinting that Moscow was prepared to use nuclear weapons. His mobilisation call comes as Moscow-held regions of Ukraine prepare to hold annexation referendums this week, dramatically upping the stakes in the seven-month conflict by allowing Moscow to accuse Ukraine of attacking Russian territory. (Photo by Alexander NEMENOV / AFP) (Photo by ALEXANDER NEMENOV/AFP via Getty Images)
ALEXANDER NEMENOV via Getty Images
Protests against mobilisation are taking place in several Russian cities today, mostly small-scale actions leading to a smattering of arrests. The woman’s sign reads “No to Mobilisation” pic.twitter.com/EbytXN2OQF
<img class="img-sized__img landscape" loading="lazy" alt="Russian police officers detain a protester during a protest rally at Arbat street in Moscow, Russia.” width=”720″ height=”480″ src=”https://www.wellnessmaster.com/wp-content/uploads/2022/09/send-putin-to-the-trenches-russias-military-call-up-sparks-protests-4.jpg”>
Russian police officers detain a protester during a protest rally at Arbat street in Moscow, Russia.
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The Associated Press news agency witnessed at least a dozen arrests in the first 15 minutes of a nighttime protest in the capital.
“I’m not afraid of anything. The most valuable thing that they can take from us is the life of our children. I won’t give them life of my child,” said one Muscovite, who declined to give her name.
Asked whether protesting would help, she said: “It won’t help, but it’s my civic duty to express my stance. No to war!”
In Yekaterinburg, Russia’s fourth-largest city, police hauled onto buses some of the 40 protesters who were detained at an anti-war rally. One woman in a wheelchair shouted, referring to the Russian president: “Goddamn bald-headed ‘nut job’. He’s going to drop a bomb on us, and we’re all still protecting him. I’ve said enough.”