My plan will be boost for nervous markets, says Kwasi Kwarteng

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The Chancellor vowed that on October 31 he will reassure investors that his recent tax-cutting spree will not saddle the nation with unsustainable debt. He told MPs yesterday: “It will be relentlessly upbeat. There will be an absolutely iron commitment to fiscal responsibility.”

But he warned failure to get support from MPs for his policies will “unsettle the markets”.

Senior Tory MP Mel Stride urged Mr Kwarteng to reach out to MPs to ensure that he gets the measures approved or risk further economic turmoil.

Conservative Julian Smith, a former Cabinet minister, said the Government must not balance tax cuts “on the back of the poorest people in our country”.

The Bank of England warned of a “material risk” to financial stability as it made a fresh emergency move to try to calm investors yesterday.

It said it would buy more government bonds to try to stabilise their price and prevent a sell-off that could put some pension funds at risk of collapse. It is the third time the Bank has had to step in since the mini-Budget.

The Bank was forced to intervene after government borrowing costs rose sharply despite actions it and the Treasury took to calm investors on Monday.

Bank governor Andrew Bailey warned the emergency intervention in the bond markets will end on Friday.

Addressing pension fund bosses in Washington, he said they had “three days left” to sort out their finances.

Experts believe Mr Kwarteng will have to row back on more tax cuts or slash public spending.

The Institute for Fiscal Studies has warned government departments could see “big and painful cuts” of up to £60billion a year to balance the books.

Former Tory minister Stephen Hammond suggested Liz Truss abandon her pledge to reduce corporation tax.

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