New chancellor Jeremy Hunt says some tax rates will have to go up
Joe Biden has said that he thought Liz Truss’ original economic plan – that tanked the pound and spooked the markets – was “a mistake”.
“I just think, I disagree with policy but it’s up to Great Britain to make that judgment, not me,” the US president told reporters at an ice cream shop in Oregon yesterday.
Earlier, the new chancellor Jeremy Hunt said Ms Truss’s government went “too far, too fast” with its mini-Budget.
Mr Hunt was appointed after the PM sacked Kwasi Kwarteng as chancellor and reversed sweeping tax cuts after weeks of financial turmoil. In a statement, he said his focus will be “on growth underpinned by stability.”
“The drive on growing the economy is right – it means more people can get good jobs, new businesses can thrive and we can secure world-class public services. But we went too far, too fast,” he said.
Meanwhile, the Bank of England warned of higher interest rates than expected next month in a bid to tackle inflation.
The bank’s governor Andrew Bailey said: “As things stand today, my best guess is that inflationary pressures will require a stronger response than we perhaps thought in August.”
Today’s guests on Sky News’ Sophy Ridge on Sunday
Later this morning, a number of MPs will appear on Sky News’ Sophy Ridge on Sunday.
They are Andrew Griffith, financial secretary to the Treasury, and backbencher Robert Halfon of the Conservative Party, and Labour’s shadow business secretary Jonathan Reynolds.
Former Bank of England deputy governor Prof. Sir Charles Bean and Unite the union general secretary Sharon Graham are also expected to join the show.
Lamiat Sabin16 October 2022 08:01
Lib Dems: Tories should do ‘right thing’ and call general election
Liberal Democrat leader Sir Ed Davey called for a general election.
He said the problem is not just PM Liz Truss and her government, but the “whole” Conservative Party.
“They can’t agree and therefore I think they all need to go,” he told BBC Breakfast.
He admitted that, given the state of the polls, it is unlikely that the Tories will do the “right thing” and hold an election.
But he said “the damage is already done” to the UK economy, in the wake of the mini-budget.
Sir Ed said the appointment of Jeremy Hunt as chancellor has not gone far enough in reversing the mini-budget.
“The government seemed completely out of touch. I think they’re just taking people for granted,” he said.
“And let’s hope we get a Budget that improves things, but I’m afraid I feel a lot of the damage has already been done.”
Lamiat Sabin16 October 2022 07:30
Labour MP Richard Burgon calls for ‘taxing the wealthiest’
East Leeds Labour MP Richard Burgon calls for a wealth tax as the new chancellor Jeremy Hunt said taxes would rise in the weeks ahead.
“The new Tory Chancellor says taxes will go up. So there’s a clear choice: tax workers or tax the wealthiest,” Mr Burgon tweeted.
“A 10 per cent tax on wealth above £5m could raise £105 BILLION. That could provide vital support for people and public services in this crisis. Let’s fight for a Wealth Tax!,” he said.
Vishwam Sankaran16 October 2022 06:25
Tory donors turn on Liz Truss
Conservative donors are turning on UK prime minister Liz Truss even as new Chancellor Jeremy Hunt ditched many of her budget policies.
John Griffin, one of the most generous donors of the Conservative Party, said Ms Truss was “out of her depth,” calling for her to be replaced.
“I hope that the sense of self-preservation will force the government to cooperate with business to pursue a coordinated, socially responsible economic policy,” another donor, Alexander Temerko, said.
Asda supermarket chain chairman Lord Rose described the prime minister as a “busted flush,” adding that the current situation was unsustainable.
Tory donors turn on Truss even as Hunt rips up disastrous mini-Budget
‘Time is running out’ to remove the prime minister, says top Conservative donor. ‘The more we dig this hole the deeper it is going to be’
Vishwam Sankaran16 October 2022 05:58
ICYMI: Jeremy Hunt says ‘difficult’ decisions ahead
New Chancellor Jeremy Hunt said yesterday that taxes will rise, warning of “difficult” spending cuts ahead.
He said in multiple interviews that there would be tax rises in the coming weeks.
“We are talking about very difficult decisions in budgets where there is already a great deal of pressure,” he said on Sky News. While he has refused to go into the specifics, he said this was a “compassionate Conservative government.”
Jeremy Hunt says taxes will rise and ‘difficult’ cuts are needed
Also refused to commit to PM’s pledged 1p cut in income tax and to raise defence spending to 3 per cent
Vishwam Sankaran16 October 2022 05:27
Biden calls Liz Truss’s economic plan ‘a mistake’
US president Joe Biden said he was not the only one who thought British prime minister Liz Truss’ original economic plan was “a mistake”.
“The idea of cutting taxes on the super-wealthy at a time when – anyway, I just think, I disagree with policy but it’s up to Great Britain to make that judgment, not me,” he said while speaking to reporters at an ice cream shop in Oregon.
“I’m not concerned about the strength of the dollar. I’m concerned about the rest of the world,” the US president said.
Vishwam Sankaran16 October 2022 05:01
Spending cuts of up to £40bn expected after Liz Truss announcement
Prime minister Liz Truss today confirmed for the first time that her tax cuts will require reductions in public spending plans – estimated by one leading economic think tank at up to £40bn.
Read more on this story from our political editor Andrew Woodcock here:
Spending cuts of up to £40bn expected after Liz Truss announcement
U-turns have filled less than half the £62bn ‘black hole’ created by Kwasi Kwarteng
Emily Atkinson16 October 2022 03:00
Editorial: For the time being, Liz Truss has saved her political life – but at what cost?
For the time being at least, the prime minister has indeed saved her political life, but at some considerable cost to herself, and with rather more damage inflicted on her old friend, soulmate and ally, Kwasi Kwarteng. He is, though, far from an innocent party in this farce. It was his sheer, unnecessary arrogance that led to much of the mess.
Editorial: Liz Truss has saved her political life for now – but at what cost?
Editorial: The prime minister has the great good fortune that her enemies are divided about whom they want to lead the party and what they want that person to do
Emily Atkinson16 October 2022 02:00
Watch: Comedian parodies Liz Truss’ speech over U-turn
Comedian parodies Liz Truss’ speech over U-turn
Emily Atkinson16 October 2022 01:00
‘Send off the clowns’: Labour attacks government with scathing new posters
Labour party is looking to capitalise on the government choas with a series of new adverts as it gears up for the next general election.
In four scathing postersLabour attacks the Conservatives for damaging the UK’s standing on the world stage, hiking mortgages and crashing the economy.
It comes after a disastrous week for prime minister Liz Truss, whose authority has been left severely damaged by her decision to sack chancellor Kwasi Kwarteng and U-turn on planned tax cuts.
Here are the four posters:
Emily Atkinson16 October 2022 00:00