First-time buyer met with gasps by Question Time audience

She continued: “They are saying ‘you need to immediately look at putting your application through because if you don’t the lenders may even pull these offers’.” At this, Lord Karan Bilimoria, who was a member of Thursday’s Question Time panel, shook his head with a look of solemn incredulity. The audience member added: “For me … Read more

Ministers told to make savings as Tory anger over markets chaos grows

Mr Philp’s letter will insist that departments find savings where possible and live within existing budgets. The aim is to reduce the level of government borrowing needed in a bid to calm the markets. Whitehall budgets were already under pressure because of high inflation, but the new instruction from the Treasury will make things worse. … Read more

Liz Truss must hold her nerve as the world tips into a calamitous recession

For the past 25 years, and especially since the financial crisis, the global economy has taken a disastrous wrong turn for which we are about to pay a hideous price. In one of the gravest intellectual errors since communism, many of the world’s cleverest people thought they had discovered the secret to perpetual prosperity. Forget … Read more

London politics LIVE: Kwasi Kwarteng facing Tory backlash as Bank of England steps in to stabilise markets

C hancellor Kwasi Kwarteng faced a growing revolt on Wednesday as a senior Tory MP slammed the “inept madness” in his mini-Budget which sent the pound plunging. After an emergency intervention by the Bank of England to protect Britain’s financial stability, Simon Hoare MP tweeted: “In the words of Norman Lamont on Black Wednesday: “today … Read more

Bank of England warns of ‘significant’ rate rises as Kwasi Kwarteng says his plan will work

T he Bank of England has signalled it is ready to ramp up interest rates to shore up the pound as Chancellor Kwasi Kwarteng insisted he was “confident” his tax-cutting strategy will deliver the promised economic growth. After a day of turmoil in the markets on Monday which saw sterling slump to a record low … Read more

There is no sterling crisis, except in the minds of idiots

It seems any stick will do to beat up on the Government’s new fiscal package. Seeing that there is no logic in attacking fiscal solvency, because the Chancellor has explicitly committed himself to it, the mob of critics have fastened on the fall in sterling as the “canary in the coal mine” that denounces the … Read more

Banks pull mortgages from sale amid interest rate chaos

In a pointed reference to market demand for forecasts for the public finances from the independent Office for Budget Responsibility (OBR), which were not released by Kwasi Kwarteng, the Chancellor, when he announced plans to slash taxes last week, Mr Bailey said: “I welcome the Government’s commitment to sustainable economic growth, and to the role of … Read more

Bank of England ‘monitoring financial markets very closely’ after pound hits record low against dollar

T he Bank of England has released a statement in the wake of the pound’s dramatic fall to a historic low against the dollar, saying it is watching developments in financial markets “very closely”. In the statement released on Monday afternoon, Governor Andrew Bailey also said the Bank would not hesitate to change interest rates … Read more

Kwarteng warns Bank of England over blaming Ukraine war for inflation

Kwasi Kwarteng has issued a warning to the Governor of the Bank of England, as he vows in Friday’s mini-Budget to break the “cycle of stagnation”.  The Chancellor told Andrew Bailey that claims that near double-digit inflation was mainly driven by the war in Ukraine were less credible now that the Government had taken action … Read more