Liz Truss refuses to rule out spending cuts to pay for reduced tax rates

PM says she accepts ‘we should have laid ground better’ after mini-budget sparked economic turmoil

Liz Truss has refused to rule out public spending cuts and a real-terms drop in benefits to help pay for the mini-budget, as she sought to quell fury over her handling of the economy by admitting she should have “laid the ground better”.

The prime minister offered a sliver of remorse for the way last Friday’s mini-budget was received. There was a temporary collapse in the value of sterling against the dollar, a rebuke from the International Monetary Fund and warnings that interest rates could be hiked again.

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To win an outright Commons majority, Labour will have to gamble

Surging poll numbers mean the party can dare to dream of No 10, but it’s been here before, and the path is riskier than ever

Twelve short months ago, Boris Johnson’s Conservatives were riding a vaccine bounce, and high-spirited Tory commentators were speculating about another decade in office. Now it is Labour who are buoyant, as their poll numbers surge to record highs after a disastrous mini-budget from the new Truss administration unleashed economic and political turmoil. Some in Labour now dare to dream big. Could their party rebound from the worst performance in 80 years straight to a Commons majority?

Veterans counsel caution. Labour has been burned before. Ed Miliband’s opposition posted regular big poll leads during the coalition only for these to evaporate come polling day. But history never repeats itself exactly. Unless the economic weather changes fast, the next election will be fought in the wake of inflation, recession and home repossessions. The Conservatives’ ratings on economic management are already the worst in a generation, with much of the real pain still to come. When their reputation was last torched like this, by the ERM crisis, the next result was a Labour landslide. Time to start humming Things Can Only Get Better?

Robert Ford is professor of political science at Manchester University and co-author of The British General Election of 2019

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‘Disconnected from reality’: Tory MPs plan rebellion over Liz Truss’s economic agenda

Prime minister is facing the same fate as Theresa May when the Commons returns and could even be removed as leader

Liz Truss is already facing the possibility of crippling parliamentary rebellions over welfare, planning and a new wave of austerity, as MPs warn that No 10 has become “disconnected from reality”.

With some Conservatives in talks with Labour over how to block elements of the prime minister’s sweeping plans, senior Tories believe that Truss is now heading into the bruising parliamentary warfare that characterised Theresa May’s beleaguered premiership.

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Truss and Kwarteng to hold back OBR forecasts for six weeks

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

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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Treasury watchdog to ask Kwarteng to hand over growth forecasts

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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Truss ‘standing by Kwarteng’ as Treasury defends plans despite market turmoil – as it happened

No 10 says PM has faith in chancellor, as Treasury minister says tax cuts are the ‘right plan’. This blog is now closed

Q: When would you get debt falling as a proprotion of GDP?

Starmer says Labour does want to get that down.

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Home Office U-turn over deportation of Albanian asylum seekers

Letter undermines Priti Patel’s claim that Albanians arriving with ‘spurious’ claims could be removed quickly

The Home Office has conceded that it does not have the right to fast-track the deportation of Albanian asylum seekers after their arrival in the UK, in an abrupt policy U-turn.

Priti Patel, the former home secretary, signed a deal with the Albanian government in August to return those who arrive illegally. She claimed it meant the UK could quickly return asylum seekers who arrived in the UK and made “spurious” claims.

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City sceptical about benefits of scrapping cap on banker bonuses

Sources at largest banks say the did not lobby for move nor expect it to result in major changes to pay packets

When City of London executives were summoned to No 11 Downing Street earlier this month, they were promised reforms that would boost growth, attract talented bankers and usher a new era of prosperity for financial services.

But what the chancellor, Kwasi Kwarteng, failed to mention to bank bosses was that their pay would become a lightning rod for controversy in the mini-budget that followed.

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Liz Truss ‘plans to loosen immigration rules to boost UK economy’

PM expected to expand shortage occupation list to help businesses fill jobs amid recession warnings

Liz Truss is expected to loosen immigration rules in an attempt to stimulate economic growth amid warnings of a recession.

The prime minister is set to expand the government’s shortage occupation list in order to help businesses fill vacancies by recruiting overseas workers with less bureaucracy.

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Kwasi Kwarteng could borrow for the right reasons. These are the wrong ones

Money spent on the green transition or skills would reap a dividend. But this cash is just going to the rich

The billions of pounds of extra borrowing signalled by Kwasi Kwarteng in his not-so-mini budget can be justified as long as the money isn’t flushed down the toilet.

Funds for renewable energy projects or to boost skills training would generate a return over the next decade.

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Birmingham broods over Tory treachery as Conservative party conference looms

Tax cuts for the rich have not gone down well in Ladywood, the city constituency due to host the Conservatives’ annual gathering

Only the most bullish Conservative party strategist would have dared forecast the centre of Britain’s second-biggest city turning Tory anytime soon.

Yet as the real-life implications of the government’s mini-budget continued to crystallise on Saturday, anyone even contemplating a Conservative victory in central Birmingham should now be judged beyond delusional.

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Cut ‘symbolic gestures’, Braverman tells police in England and Wales

Home secretary directs police chiefs to focus on ‘common-sense’ policing over diversity and inclusion initiatives

Suella Braverman has ordered police chiefs to spend less time on “symbolic gestures” and more time on policing.

In an open letter to police leaders in England and Wales, in which she set out her policing agenda, the new home secretary said diversity and inclusion initiatives “should not take precedence” over tackling crime.

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Tories gambling with the finances of British people, says Starmer

Labour leader attacks ‘casino economics’ in wake of £45bn package of tax cuts announced by chancellor

Sir Keir Starmer has accused the government of “gambling the mortgages and finances” of the British people with its “casino economics”.

Speaking before his party’s conference in Liverpool, the Labour leader tweeted: “Tory casino economics is gambling the mortgages and finances of every family in the country. Labour will secure growth for working people, that benefits all communities. My government will deliver a fairer, greener future.”

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Tory MP Charles Walker expected to join Partygate committee

Exclusive: Walker is to be involved in the inquiry into whether Boris Johnson misled MPs

The veteran Tory MP Charles Walker is expected to be handed a spot on the committee investigating Boris Johnson over claims he misled MPs over Partygate.

A well-respected, long-serving backbencher, who was vice-chair of the 1922 Committee for about a decade, Walker was quietly nominated by the Liz Truss government as the House of Commons went into conference recess.

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Time is against Liz Truss as she bets big on plan to turn economy around

With an election two years away, any failure of her radical approach could shred the Tories’ credibility

When Liz Truss flew to the US this week on her first foreign trip as prime minister, she was unequivocal about how she would achieve her mission in office: “Lower taxes lead to economic growth, there is no doubt in my mind about that.”

There was not a quiver of self-doubt in her voice as she gave a round of television interviews at the top of the Empire State Building expanding on her plans for the economy and saying she was “willing to be unpopular” to push them through.

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Mini-budget 2022: pound crashes as chancellor cuts stamp duty and top rate of income tax – live

Tax cuts to cost Treasury around £37bn in 2023-24, official figures reveal

There are no urgent questions in the morning, and so Kwasi Kwarteng, the chancellor, will be delivering his statement soon after 9.30am.

The Commons starts sitting at 9.30am, but they always begin with prayers in private, and so Kwarteng will be up a few minutes later.

The last time they did it one third of the beneficiaries were people buying second homes or buy to let, so we are sceptical that this is the magic bullet to increase homeownership. What we really need to do is to build more houses and to help get people onto the property ladder by increasing the supply of housing.

When this has been done before, it has often fuelled an already hot market and many of the beneficiaries have been people buying a second or third home, rather than the first time buyers that we really want to help who are often trapped in private rented accommodation where they’re paying as much in rent every month as they would in a mortgage.

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Starmer must not ‘sit back’ if Labour is to win next election, Mandelson says

Former cabinet minister urges Labour leader to be ‘restless for change’ and challenge ‘post-truth’ campaign by Truss government

Liz Truss will mount a “post-truth” campaign presenting the Conservatives as the party of change at the next election, Peter Mandelson has warned, as he called on Keir Starmer not to “sit back” and assume automatic victory.

While Labour has held a steady lead in the opinion polls for nine months, Starmer was urged by the former cabinet minister to “do a better job” of showing voters how the party has evolved under his leadership to cement its chances of entering government.

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Tory MPs angrily challenge Rees-Mogg’s fracking revival plan

Energy secretary considers bypassing local planning rules as backbenchers voice opposition

Ministers face a furious backlash from Conservative MPs after overturning a manifesto pledge to pause fracking until it is proved safe, and then indicating drilling could be imposed without local support.

Outlining a return to shale gas extraction in England after three years, Jacob Rees-Mogg dismissed worries about earthquakes caused by the practice as “hysteria”, claiming this was often down to a lack of scientific understanding.

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Liz Truss could follow Trump and move UK embassy to Jerusalem

PM considering breaking with decades of British foreign policy by relocating UK embassy in Israel

Liz Truss has said she is considering relocating the British embassy in Israel from Tel Aviv to Jerusalem in a controversial move that would break with decades of UK foreign policy in order to follow in the footsteps of Donald Trump.

In a meeting on the sidelines of the UN general assembly in New York, the prime minister told Israel’s caretaker leader, Yair Lapid, about a “review of the current location” of the building, Downing Street said in a statement.

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