Pound news today: Calls for Liz Truss to ‘come out of hiding’ to fix ‘economic disaster’ – follow live

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Bank of England will ‘not hesitate’ to raise interest rates amid market turmoil

Liz Truss has been accused of hiding away while her tax giveaway mini-Budget caused economic turmoil.

On Wednesday, the Bank of England was forced to intervene to prevent a crisis in the UK’s major pension funds.

The bank’s decision to buy government bonds – or gilts – was an attempt to calm markets reeling from the government’s mini-Budget last week.

There has been no sign of Ms Truss, who was last seen in public sitting on the green Commons benches alongside her chancellor for his statement.

Former cabinet minister David Davis said: “This was her manifesto for the leadership, so she has to come out and defend it in a forthright way.”

Lib Dem leader Sir Ed Davey called on the PM to break cover, warning that she had just “24 hours to fix this economic disaster and prevent people losing their homes”.

The government has denied causing the sterling crisis, instead pointing the finger at Russia’s war in Ukraine, which it said was playing havoc with all major import.

Key pointsShow latest update 1664428812Councils warn support services could be axed for the poorest

The District Councils’ Network (DCN), which represents 186 lower-tier councils outside England’s big cities and urban areas, has warned that support services for families hit hardest by the cost-of-living crisis face being axed.

The DCN said without government help inflationary pressures and demand for services would push district councils’ shortfall rising to £900m next year, reported The Guardian.

“District councils face a perfect storm. Inflation and pay pressures are driving up our costs just as the cost of living crisis bites for our residents and fuels demand for our services,” Sharon Taylor, the DCN’s vice-chair and finance spokesperson and the Labor leader of Stevenage district council was quoted as saying.

“We desperately don’t want to cut back on leisure services or welfare support. But the risk is that something will have to give.”

(FILE) A primary school teacher marking a pupil’s English homework

(PA Archive)

Sravasti Dasgupta29 September 2022 06:20

1664427612Sadiq Khan demands rent freeze as London renters in leakiest homes face £1,000 premium on energy bills

London mayor Sadiq Khan has called for an immediate private rent freeze, as new analysis shows renters in the capital’s most poorly-insulated homes face paying a premium of almost £1,000.

City Hall figures shared with The Independent shows that Londoners in the leakiest private rental homes – in energy-efficiency rating bands F and G – face a premium of £947 a year.

The Labor mayor said: “The government must also give me the powers to stop rents rising in the capital which would save Londoners £3,000 over two years, and curb the inflationary pressure of rents on household budgets.”

London renters in leakiest homes face £1,000 premium on energy bills

Exclusive: Sadiq Khan demands rent freeze, as new research shows tenants in most poorly-insulated homes will pay extra £947 a year

Sravasti Dasgupta29 September 2022 06:00

1664426112’No reversal of policy’ says Treasury on mini-Budget

While the government has come under fire for its mini-Budget presented last week, a Treasury source said to Sky News that there “won’t be any reversal of policy”.

The source added that chancellor Kwasi Kwarteng will not be resigning.

Earlier Mr Kwarteng vowed to push on with the government’s radical borrowing-fuelled tax cut spree despite growing calls to “change course” amid ongoing market turmoil.

The Chancellor’s mini-budget has included plans to cut taxes to the benefit of the most wealthy (Aaron Chown/PA)

(PA Wire)

Sravasti Dasgupta29 September 2022 05:35

1664425281What Rishi Sunak predicted about Liz Truss’s ‘fairytale’ economic plans

Rishi Sunak is reported to be avoiding Conservative party conference this year, so that Liz Truss can “own” the unfolding economic chaos.

During a leadership debate on 15 July Mr Sunak accused his rival of “fairytale economics” by promising unfunded tax cuts.

On 21 August Mr Sunak’s campaign team put out a statement warning that Truss’s economic policy could cause an “inflationary spiral”.

What Rishi Sunak predicted about Liz Truss’s ‘fairytale’ economic plans

Former chancellor warning of ‘inflationary spiral’

Sravasti Dasgupta29 September 2022 05:21

1664423884Calls for Truss to ‘come out of hiding’

Calls have grown for Liz Truss to come out of hiding after the Bank of England was forced to intervene on Wednesday to prevent a major pension crisis.

Calls for Liz Truss to ‘come out of hiding’ to fix ‘economic disaster’ – follow live

Bank of England launches emergency action after pound falls

Sravasti Dasgupta29 September 2022 04:58

1664420400’Inevitable’ Tours will lose next election, says former Conservative MSP

A former Conservative MSP who believes Liz Truss has “lost control” of the economy has said it is now safer in the hands of a Labor government.

Professor Adam Tomkins, who was Glasgow’s MSP, added that it was “inevitable” the Tories would lose the next election as a result of their handling of the economy.

“That is an extraordinary thing to have to say and I’m saying it because of what Kwasi Kwarteng has done to the market in the last few days,” he told the BBC.

“It’s perfectly clear the economic future of the UK would be safer hands if Labor were in power than the Conservatives.”

Rory Sullivan29 September 2022 04:00

1664416800Voices: How did we find ourselves in such dire financial trouble?

Our chief business commentator James Moore has this report about the UK’s financial trouble:

How did we find ourselves in such dire financial trouble? | James Moore

What has happened was created by a combination of international crises and desperately bad domestic policymaking. Some of the hits were unavoidable, but by no means all

Rory Sullivan29 September 2022 03:00

1664413200Tory MPs are not panicking yet – it’s worse than that

John Rentoul writes about discontent within the Tory party over the government’s handling of the economy:

The speed of events is stunning. Truss has been prime minister for 22 days, 12 of which were taken up with mourning the death of the Queen. Yet at least one Tory MP is already privately predicting that Truss will be gone by Christmas.

Tory MPs are not panicking – it’s worse than that | John Rentoul

Truss has been prime minister for 22 days, 12 of which were taken up with mourning the death of the Queen. Yet at least one Tory MP is already privately predicting that Truss will be gone by Christmas, writes John Rentoul

Rory Sullivan29 September 2022 02:00

1664409660Rishi Sunak to skip Conservative party conference

Tory leadership runner-up Rishi Sunak will not attend the upcoming Conservative party conference.

The former chancellor has previously warned that Liz Truss’s economic policies could harm the economy.

Rishi Sunak to skip Conservative party conference

Former chancellor has been keeping low profile since the leadership race ended

Rory Sullivan29 September 2022 01:01

1664405983 What are government bonds and how will the Bank of England use them to stabilize markets?

Earlier today, the Bank of England decided to buy up long-dated gilts to shore up the British economy.

My colleague Joe Sommerlad explains how government bonds work:

What are government bonds?

Threadneedle Street intervenes to buy up long-dated gilts and ‘restore orderly market conditions’

Rory Sullivan28 September 2022 23:59

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