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

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Chancellor Kwasi Kwarteng faced growing revolt on Wednesday as a senior Tory MP denounced the ‘inane folly’ in his mini-budget that sent the pound plunging.

After an emergency intervention by the Bank of England to protect Britain’s financial stability, MP Simon Hoare tweeted: “In the words of Norman Lamont on Black Wednesday: ‘Today was a very hard “.

Mr Hoare, chairman of the Commons Northern Ireland committee, added: “These are not circumstances beyond the control of the Government / Treasury. They were written there. This inane madness can’t go on any longer.”

His remarks came shortly after another Tory MP, Robert Largan, expressed ‘serious reservations’ about some of the Chancellor’s announcements.

“I don’t believe cutting the top tax rate by 45p is the right move when the government’s fiscal room for maneuver is so limited. In my opinion this is a mistake,” he tweeted.

Former Chief Whip Julian Smith is among other Tory MPs who have spoken out against cutting the top tax rate by 45p, a move he has described as ‘wrong’.

Many Tory MPs are privately appalled by some of Mr Kwarteng’s plans that have taken the pound down.

Amid the market turmoil, the Bank of England made an emergency intervention to protect Britain’s ‘financial stability’ after the mini-budget.

The bank said it would buy billions of pounds of government debt in an attempt to lower the interest rate on government borrowing which has soared since Friday’s budget statement.

He stressed that he was also looking to protect households and businesses from the crisis, which are also facing spiraling mortgage and other borrowing costs.

The dramatic move came at 11 a.m. as the pound continued to fall and top bankers met the Chancellor as he sought to defuse the economic crisis he had sparked.

Live updates

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Tory MP slams ‘inane folly’ of mini-budget

A senior Tory MP has denounced the ‘inane folly’ of the Chancellor’s mini-budget which caused the pound to fall.

After an emergency intervention by the Bank of England to protect Britain’s financial stability, MP Simon Hoare tweeted: “In the words of Norman Lamont on Black Wednesday: ‘Today was a day very difficult’.”

Mr Hoare, chairman of the Commons Northern Ireland committee, added: “These are not circumstances beyond the control of the Government / Treasury. They were written there. This inane madness cannot go on any longer.”

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Work: the government “lost control” of the economy

Labor leader Sir Keir Starmar said the government had “lost control of the economy”.

“It’s going to mean higher mortgages and higher prices. And why do ? Unfunded tax cuts for the 1%.

“They must recall Parliament today and drop this act of economic self-harm.”

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Kwarteng in the face of growing Conservative revolt

Chancellor Kwasi Kwarteng is facing a growing Tory backlash against parts of his mini budget that plunged Britain into economic crisis.

Robert Largan, Tory MP for High Peak, became the latest Tory politician to criticize elements of the budget statement on Friday.

He tweeted: “I have serious reservations about a number of announcements made by the Chancellor. I don’t believe cutting the top rate of tax by 45p is the right move while the budgetary leeway of the government is so limited. In my opinion, that is a mistake.

Former Chief Whip Julian Smith is among other Tory MPs who have spoken out against cutting the top tax rate by 45p, a move he has described as ‘wrong’.

Many Tory MPs are privately appalled by some of Mr Kwarteng’s plans that have taken the pound down.

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“The last thing we want is a political crisis”

Mel Stride, Conservative chairman of the Commons Treasury Committee, which backed Rishi Sunak for the leadership, warned “there is a lot of concern within the parliamentary party, there is no doubt about it”.

Asked about Chancellor Kwasi Kwarteng’s future, he told Sky News: “Well there’s a lot of concern within the parliamentary party, there’s no doubt about that.

“I don’t want to speculate on the Chancellor’s future, other than to say I think the party should be right now, it’s really uniting in times of economic crisis. The last thing we want now, it’s a political crisis to compound that, and I think we’re really focused on that growth issue.

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Pressure mounts for Kwarteng front

MPs are not due to return to Westminster until October 11 after the break from party conferences.

The chancellor is due to address the Tory conference in Birmingham on Monday but faces calls to speak to the nation before then.

Kwasi Kwarteng spoke to Treasury bank bosses on Wednesday morning ahead of the Bank of England announcement.

Simon Walker / Her Majesty’s Treasury
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Ryanair boss says economic plan is ‘crazy’

Ryanair chief executive Michael O’Leary called the British government’s economic plan “crazy”.

Speaking in Dublin, Mr O’Leary said the policy could potentially bankrupt the economy in years to come.

“I think what they’ve done in the UK is crazy,” Mr O’Leary said.

“You cannot have a two-year energy guarantee; it’s totally free.

“I think they could bankrupt the UK economy over the next couple of years.

Michael O’Leary

/ Eric Piermont/AFP/Getty Images
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Shadow Chancellor calls for ‘urgent statement’ from Kwateng

Rachel Reeves has called for an “urgent statement” from the Chancellor to address “the crisis he has caused”.

The Shadow Chancellor said of the Tories: ‘Their decisions will lead to higher inflation and higher interest rates – and are not a credible plan for growth.

“The Chancellor needs to make an urgent statement on how he is going to resolve the crisis he has caused.”

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The pound falls below 1.055 cents

The pound lost value against the US dollar again – dropping about a cent to $1.055 within minutes.

It fell shortly after the Bank of England announced action to avert a “significant risk to UK financial stability”.

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Pictured: Chancellor meets bank bosses

Simon Walker / Her Majesty’s Treasury
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Bank applies ‘financial wound dressings’

Joshua Raymond of XTB.com said there was an “immediate plunge” in long-term UK gilt yields after the Bank’s action, with 10- and 30-year bond yields falling by around 0.4 % in a few minutes”. .

He said: “The UK central bank first tried words, which failed. Now he is trying to intervene in the bond markets to bring yields under control.

“On the one hand, it could reassure the market that the Bank is ready to act outside of its scheduled meetings.”

He added: ‘The Bank of England is applying band-aids to the financial wounds created by the Truss government, which has shown no clues to reverse the policy.