Prime minister Liz Truss has said that her economic plan involves “disruption in the short term” as the Welsh secretary said “rigorous” spending cuts are imminent.
Her comments come as the S&P ratings on the UK changed their outlook from stable to negative on Friday.
Writing in The Sun, Ms Truss admitted that “not everyone will like what we are doing”.
She said: “We need to get things done in this country more quickly. So I am going to do things differently. It involves difficult decisions and does involve disruption in the short term.”
Meanwhile, Welsh secretary Robert Buckland told Sky News announcements on spending cuts would be made in the coming week, saying: “We intend to be extremely rigorous when it comes to bearing down on public expenditure.”
Elsewhere, chancellor Kwasi Kwarteng insisted he had “no other choice” by to cut taxes for the rich.
He also said that his November statement would contain a “commitment to spending discipline”.
Taxing richest 1% to pay for green funds will make society ‘more equal’, Green Party co-leader says
Green Party co-leader Adrian Ramsay has said the party’s call for a tax on the richest one per cent in society to pay for a green fund aims to “make our society more equal”.
The tax would see the wealthiest people in the country contribute one per cent of their money to a “fund to create a greener society”.
Mr Ramsay told BBC Breakfast: “We’re calling for this at a time of economic and political crises. We’ve seen economic chaos caused by a mini-budget that has been making our society more unequal.
“This is about trying to make our society more equal.”
Maryam Zakir-Hussain1 October 2022 10:00
Liz Truss admits UK faces economic ‘disruption’ because of mini-Budget
As Tories prepare for their annual conference, the prime minister warned the country faced a “difficult winter” ahead as she made clear she had no plans to change course her radical, borrowing-fuelled tax-cutting agenda.
“I recognise there has been disruption but it was really, really important we were able to get help to families as soon as possible,” the PM told broadcasters on Friday – pointing to the cap on the cost per unit of energy.
Doing things differently means ‘disruption in short term’, says PM
Maryam Zakir-Hussain1 October 2022 09:35
Mick Lynch apologises to London Marathon runners for rail strikes but says government to blame
RMT general secretary Mick Lynch has apologised to the public including participants of the London Marathon as they face transport difficulties because of rail strikes.
Speaking to BBC Breakfast, Mr Lynch said the union did not want to inconvenience people but warned it was the government who had brought the dispute on.
Asked whether he would apologise to the public, he said: “Absolutely. We don’t want to inconvenience the public and we’re really sorry that that’s happening.
“But the government has brought this dispute on. They (put) the challenges down to us, to cut our jobs, to cut our pensions and to cut our wages against inflation.”
Mr Lynch said that he had spoken with new Transport Secretary Anne-Marie Trevelyan, who seemed “very pleasant,” but added what was needed was a change of attitude at the negotiating table.
He added: “Grant Shapps was not allowing a compromise, so I hope there’s a change of mood and a change of stance.”
Maryam Zakir-Hussain1 October 2022 09:10
Cabinet minister suggests ‘rigorous’ spending cuts to come
Welsh secretary Robert Buckland admitted there had been “some turbulence” in the markets this week – but insisted the government would stick with the plan to “incentivise growth”.
With economists and union leaders warning a return to austerity, the cabinet minister suggested public spending cuts were on the way, Adam Forrest writes.
“We intend to be extremely rigorous when it comes to bearing down on public expenditure,” Buckland told Sky News – saying there would be announcements on spending in the weeks ahead.
The minister said the government wanted to reassure market to “will be seeking to balance the books in a sensible way” departments as “efficient and as lean as possible”.
Maryam Zakir-Hussain1 October 2022 09:06
Greens call for £75bn tax hit on polluters and the wealthy
The Green Party has called for an emergency £75 billion tax package targeting polluters and the country’s wealthiest individuals, to fund a nationwide insulation and renewable energy programme.
At the party’s annual conference in Harrogate, co-leader Carla Denyer called for a new wealth tax on the richest 1% of households – starting with a marginal rate of 1% on those with £3.4 million, rising to 10% on those with £18.2 million and above.
She said there should be a “dirty profits tax” on North Sea oil and gas which would be used as a stepping stone towards a permanent carbon tax on polluting industries.
The party said a new levy on the richest 1% could help fund a nationwide insulation and renewable energy programme.
Maryam Zakir-Hussain1 October 2022 08:50
Energy bills rise to record-high levels as price cap lifted
Families have been urged to take a photograph of their meter reading and do what they can to cut their energy use as prices spike from Saturday.
The amount that a household pays for each kilowatt hour of electricity it uses has risen to 34p from the already record 28p that families pay.
Gas prices are going from 7p to 10p per kilowatt hour under the new price cap.
It means that the typical household in the UK will spend around £2,500 on its energy bills – but those that use a lot of gas and electricity will naturally pay more.
Just a year earlier, gas had cost 4p per kilowatt hour for customers on the price cap and the charge for electricity was 21p.
Amount that household pays for each kilowatt hour of electricity it uses will rise to 34p
Maryam Zakir-Hussain1 October 2022 08:30
Kwarteng defends mini-budget saying country ‘had no other choice’
The chancellor has defended his mini-budget by saying the government “had no other choice” than to do “something different” to spark the economy.
As the prime minister admitted the strategy had caused “disruption”, Kwasi Kwarteng said the public expected public spending would be tightly controlled.
“The British taxpayer expects their government to work as efficiently and effectively as possible, and we will deliver on that expectation,” he wrote in The Daily Telegraph.
“Not all the measures we announced last week will be universally popular. But we had to do something different. We had no other choice.”
Chancellor’s comments come as Liz Truss admits government caused ‘disruption’ of markets
Maryam Zakir-Hussain1 October 2022 08:10
What Liz Truss’s Tory conference speechwriters will need to do
“One way of assessing the scale of the task facing Liz Truss at next week’s Conservative Party conference is to imagine drafting her speech for her.”
Sean O’Grady ponders what the PM might try in Birmingham.
A dig at Starmer, a mention of Ukraine – Sean O’Grady ponders what the PM might try in Birmingham
Sravasti Dasgupta1 October 2022 07:45
Tory MPs ‘may help Labour to bring down’ parts of Chancellor’s budget
Tory MPs are reportedly in talks with the Labour Party to defeat certain parts of Kwasi Kwarteng’s mini-Budget.
Rebels are apparently in talks with the opposition to make sure that the government’s controversial new measures are brought to a vote in the House of Commons.
Some MPs want to reinstate the 45p top rate of income tax
Sravasti Dasgupta1 October 2022 07:15
Our chancellor displays a shocking naivety when it comes to handling finances
“So, Kwasi Kwarteng was warned. I have it on the highest, unimpeachable authority that the chancellor was told ahead of his tax-cutting measures that the markets would react badly.
Kwarteng apparently did not care, saying he was relaxed about the response. It’s bizarre, doesn’t make sense: a chancellor who apparently believes he is somehow impervious, on a mission, and hang the opposition.”
What the debacle amounts to is a new government anxious to strike out, to put down a marker, to show they’re different, thinks Chris Blackhurst
Sravasti Dasgupta1 October 2022 06:45