Category Archives: Business

Michael Gove says Liz Truss’s tax cut plans ‘not Conservative’

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Influential former minister hints he will not vote for mini-budget measures, in blow to PM

Michael Gove said Liz Truss’s programme of tax cuts was deeply concerning and “not Conservative”, and hinted he would not vote for them, in a major blow to the prime minister’s authority.

Gove, who was removed as levelling up secretary before Boris Johnson left No 10 but remains a hugely influential Tory MP, said he could not back Truss’s abolition of the top 45p rate of tax, or the removal of the cap on bankers’ bonuses.

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Liz Truss admits she should have ‘laid ground better’ before mini-budget and says cabinet not consulted about 45% top rate tax cut – live

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Latest updates: PM vows to press ahead with mini-budget plans and dismisses objections to top rate of tax being axed

Q: Are you absolutely committed to getting rid of the 45% rate of tax?

Yes, says Truss.

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Kwarteng is sticking to his guns on tax and spending cuts. But what he really needs is luck

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The chancellor appears unwilling to reverse any of the measures in his mini-budget. If he is to survive, it may be down to factors beyond his control

Kwasi Kwarteng’s inept handling of the government’s finances since he took office last month has left Liz Truss cornered. The prime minister must play for time and piece together a rescue plan by the end of November, along with a more rounded budget that preserves her tax-cutting agenda while also appearing responsible to financial markets watchful for the next misstep.

Treasury officials, rudderless after the departure of two permanent secretaries (Tom Scholar and deputy Charles Roxburgh) in the space of four months, will be under pressure to find a formula that also satisfies the cautious instincts of the government’s independent economic forecaster, the Office for Budget Responsibility (OBR), which is inclined to dismiss policy “quick wins” as ineffectual until evidence proves otherwise.

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Select group of Optus customers should cancel licences and passports immediately, minister says

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Clare O’Neil says Optus has emailed 10,200 customers who had their records posted online after 10 million people affected in larger cyber hack

The 10,200 Optus customers who had their personal records posted online last week in the wake of the telco’s massive data breach should immediately cancel their driver’s licences and passports, the federal government says.

Optus has written to the 10,200 customers exposed last Monday after 10 million Australians had their records stolen from the telco a week earlier.

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Amtrak suspends San Diego-Los Angeles service due to shifting ground

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Metrolink also suspends trains because ground underneath stretch of seaside track in southern California has shifted

Metrolink and Amtrak have suspended train services linking San Diego to Los Angeles – along with the rest of the US – because ground underneath a stretch of seaside track in southern California has shifted, according to officials.

The San Diego Union-Tribune reported Friday that service has been suspended indefinitely in the community of San Clemente, on the border of Orange and San Diego counties.

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British Steel owner reportedly asking for urgent financial help from government

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Jingye Group understood to have told ministers that its blast furnaces are unviable without huge cash injection

The owner of British Steel, the UK’s second-biggest steel producer, is understood to be seeking an urgent package of financial support from the government.

Jingye Group, which bought the company out of insolvency just two years ago, has told ministers that its two blast furnaces are unlikely to remain feasible unless the Scunthorpe-headquartered company is granted financial aid, Sky News has reported.

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Redcar steelworks demolished in massive controlled explosion

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Basic Oxygen Steelmaking, which shut seven years ago, blown up using 1.6 tonnes of explosives

A former steelworks in Redcar has been pulled down in what is believed to be one of the biggest explosive demolitions in the UK.

In dramatic scenes – in which the structure disappeared in a cloud of dust and smoke with a blast that could reportedly be heard eight miles away – the 65-metre-high Basic Oxygen Steelmaking plant was blown up on Saturday morning.

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‘UK travel is on sale’: plunging pound attracts US visitors

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Operators catering for inbound tourists enjoy best month for bookings in three years

The plunging pound may cause British holidaymakers to choke at the prices if and when they next choose to go abroad. But one slice of the travel industry is seeing a silver lining in the storm clouds.

Tour operators catering for visitors are quietly calling it their best month for bookings since October 2019 as US tourists take advantage of sterling’s tumble.

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Serco injected £60m to prop up pension fund after market meltdown

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£1bn scheme is latest to scramble to raise cash after chancellor’s tax-cutting mini-budget sparks turmoil

The pension scheme trustees at the government contractor Serco have been forced to tap the company for £60m of emergency support after the UK’s financial markets meltdown this week.

Serco’s £1bn pensions scheme is the latest to scramble to raise cash after a plunge in the pound and a meltdown in UK bond prices triggered calls on fund managers to provide collateral for niche financial products they had taken out to hedge against swings in the value of their investments.

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Why OBR forecast is being held back until Kwarteng’s next fiscal plan

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Huge policy changes are needed to get UK back on track – so early publication would give an incomplete picture

The message the government wanted to get out was clear. After less than a month as prime minister, Liz Truss had converted from vocal scourge of Treasury orthodoxy to an active supporter.

Given the fallout in financial markets after the not-so-mini-budget, Truss and her chancellor, Kwasi Kwarteng, laid on a heavily stage-managed meeting on Friday with officials from the Office for Budget Responsibility, the Treasury’s independent economic forecaster, to try to smooth over the mess.

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Size of Nord Stream blasts equal to large amount of explosive, UN told

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Experts suggest maintenance robots may have planted bombs, as concern grows over methane buildup

Denmark and Sweden have said leaks from the Nord Stream pipelines in the Baltic Sea were caused by blasts equivalent to the power of “several hundred kilograms of explosive”.

The conclusions were made in a joint report by Denmark and Sweden which was delivered to the United Nations. The UN environment programme said on Friday the ruptures are likely to have led to the biggest single release of climate-damaging methane ever recorded.

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UK isolated as EU agrees windfall tax on energy firms

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Levy could raise €140bn, and energy ministers also set targets to cut electricity use

EU energy ministers have agreed to levy windfall taxes on energy companies’ profits, and to cut electricity use, but remain at loggerheads over proposals to cap the price of gas.

Meeting in Brussels on Friday, the bloc’s 27 energy ministers signed off on proposals to levy a “solidarity contribution” on fossil fuel producers that have benefited from soaring energy prices.

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Currys raises pay for third time in 13 months amid staff shortage

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Electrical goods retailer keen to attract and retain workers as cost of living increases

Currys has raised pay for the third time in 13 months to attract and retain workers amid a labour shortage and rise in the cost of living.

The electrical goods retailer said that from 30 October it was increasing rates by 3.5% to a minimum of £10.35 an hour (£11.43 in London), only a month after a previous rise came into effect.

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Truss and Kwarteng to hold back OBR forecasts for six weeks

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PM and chancellor say they will not publish projections until late November despite them being ready next week

Liz Truss and Kwasi Kwarteng will refuse to release forecasts from the Office for Budget Responsibility (OBR) until more than six weeks after receiving them, despite calls for them to be published as soon as possible.

The prime minister and chancellor said they would only publish the independent forecasts on 23 November alongside a fiscal statement, despite them being ready on 7 October.

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OBR: we offered to update forecasts in time for ‘mini-budget’ – live

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Watchdog said it was ready to supply information, but was not asked to do so by Kwasi Kwarteng

Q: Can you reassure listeners that your judgment is better than that of people like the IMF and the Bank of England, who have criticised the mini-budget?

Truss says:

I have to do what I believe is right for the country and what is going to help move our country forward.

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Buy-to-let landlords facing financial cliff edge after mini-budget

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Mortgage market meltdown has left many amateur landlords facing a stark choice: to raise rents or sell up

Britain’s amateur landlords have benefited from years of runaway house price inflation, while intense competition among tenants has sent rents soaring. Now, thanks to the meltdown in the mortgage market triggered by last week’s disastrous mini-budget, many face a financial cliff edge.

Figures shared with the Guardian show that the number of new buy-to-let mortgage deals available has plummeted by 55% in less than a week as lenders frantically pulled products and in many cases increased prices.

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Treasury watchdog to ask Kwarteng to hand over growth forecasts

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Tory chair Mel Stride says watchdog needs to hear how chancellor will boost growth, and suggests one option might be via immigration

Kwasi Kwarteng will be called before parliament’s Treasury watchdog and asked to hand over independent growth forecasts, as its chairman said there is “not a very broad path” out of the current economic situation.

Mel Stride, a Conservative MP and chair of the Treasury committee, said Kwarteng was “very, very unlikely to reverse” the £45bn of unfunded permanent tax cuts he announced last Friday, even though that is an option. The alternative, he said, was to act quickly to “demonstrate to the markets that growth is realistic”. The third option would be deep cuts to public spending, but that would be difficult given the current pressure of inflation, Stride said.

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Bank of England in £65bn scramble to avert financial crisis

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Bank of England left with no action but to intervene after Kwasi Kwarteng’s mini-budget

The Bank of England has been forced into emergency action to halt a run on Britain’s pension funds after the impact of Kwasi Kwarteng’s ill-received mini budget prompted fears of a 2008-style financial crisis.

Threadneedle Street said the fallout from a dramatic rise in government borrowing costs since the chancellor’s statement had left it with no choice but to intervene to protect the UK’s financial system.

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Nord Stream gas leaks may be biggest ever, with warning of ‘large climate risk’

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‘Colossal amount’ of leaked methane, twice initial estimates, is equivalent to third of Denmark’s annual CO2 emissions or 1.3m cars

Scientists fear methane erupting from the burst Nord Stream pipelines into the Baltic Sea could be one of the worst natural gas leaks ever and pose significant climate risks.

Neither of the two breached Nord Stream pipelines, which run between Russia and Germany, was operational, but both contained natural gas. This mostly consists of methane – a greenhouse gas that is the biggest cause of climate heating after carbon dioxide.

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EU biometric entry system could multiply delays at Dover

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Additional requirements would be time-consuming and threaten capacity, Dover port boss says

Post-Brexit Channel border delays could multiply from next May, with a five-person vehicle being held for up to 10 minutes if the EU goes ahead with a planned biometric entry system, the Port of Dover has said.

The entry-exit system (EES), which is due to start in May 2023, will require all non-EU nationals to register their fingerprints and be photographed before entering the bloc.

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