New Chancellor Jeremy Hunt is due to speed up new budget measures on Monday aimed at ending Britain’s economic crisis.
He was due to make an emergency statement on his tax and spending plans at 11am, before addressing the Commons at 3.30pm.
The announcement was made before markets opened the morning after the chaos caused by its predecessor Kwasi Kwarteng’s mini budget on September 23.
The Chancellor briefed Bank of England Governor Andrew Bailey on his plans on Sunday evening.
In a statement, the Treasury said: “The Chancellor will make a statement later today outlining measures from the medium-term fiscal plan that will support fiscal sustainability.
“He will also make a statement in the House of Commons this afternoon.”
He added: “This follows the Prime Minister’s statement on Friday and further conversations between the Prime Minister and the Chancellor over the weekend, to ensure sustainable public finances support economic growth.
“The Chancellor will then present the full medium-term budget plan which will be published alongside a forecast by the Independent Office for Budget Responsibility on October 31.”
“The Chancellor met the Governor of the Bank of England and the head of the Debt Management Office last night to brief them on these plans.”
Liz Truss’ election was a ‘bad’ decision, Tory MP suggests
A Tory MP has suggested party members made the ‘wrong’ decision when they elected Liz Truss as party leader in September.
North Thanet MP Sir Roger Gale told Sky News: ‘I think MPs probably have a better perspective of both the economic situation and the personalities than the membership as a whole.
“For a very good reason – we know them, we work with them day to day.
“General members don’t and that’s understandable, and I don’t think we should…blame…members for getting it wrong.”
Sir Roger, who voted neither for Ms Truss nor Rishi Sunak in the final leadership ballot, added: ‘It was not my choice, but we have to accept that we live in a democracy. We accept the situation as it is.
He said replacing the prime minister would require a “coronation”, but said: “At the moment I don’t see any agreed candidate within the party”.
Ex-Treasury official backs Chancellor’s statement decision
Former senior Treasury mandarin Lord Macpherson backed Mr Hunt’s decision to make an emergency declaration in the Commons over his tax and spending plans.
BoE says its intervention has boosted sector resilience
The Bank of England said its bond-buying program which closed on Friday has “delivered a significant increase in the resilience of the sector.”
The central bank has launched a program to buy up to £65billion of UK government bonds – known as gilts – to help stabilize prices amid sell-offs amid concerns over government cuts. unfunded taxes in the former chancellor’s mini-budget.
Around £19.3 billion worth of gilts were purchased in total by the Bank of England under this scheme.
Tory MP: Give Truss and Chancellor time to end party ‘psychodrama’
A Tory MP has pleaded with his colleagues to stop the ‘psychodrama’ tearing their party apart and give Liz Truss and new Chancellor Jeremy Hunt the ‘space’ to implement their economic plan.
Andrew Bowie, MP for West Aberdeenshire and Kincardine, tweeted: ‘We owe the British people a period of calm and stable government in the national interest. We need to give the new Chancellor the time and space to calm the markets and present his economic plan. What we don’t need is another sequel added to the conservative psychodrama.
Pound soars ahead of new Chancellor’s contingency budget plan
The pound jumped after news that Jeremy Hunt is to issue an emergency declaration this morning to calm the chaos in financial markets.
Recap: Could the Tories force Liz Truss out of office?
Pressure is mounting on Liz Truss to resign as Prime Minister, after three Tory MPs openly called for her resignation on Sunday.
But Conservative Party rules currently prohibit a vote of confidence in a prime minister’s first year in office, which for Ms Truss remains at 11 months. Meanwhile, the next general election is not expected before the end of 2024.
Could she then be forced to resign? And if yes, how ? Read the full recap here.
Rishi is key to success, says Tory MP
An MP who backed Rishi Sunak in the Tory leadership race has urged Liz Truss to appoint the former Chancellor to Cabinet.
Andrew Bowie, Conservative MP for West Aberdeenshire and Kincardine, told Times Radio: ‘I think if we are to bring the party together, govern in the national interest and continue to do good things as government (we have to) demonstrate the ability to go beyond divisions within the party.
“That means having the best minds and the best talent in government – that obviously includes Rishi Sunak.”
‘Panic proof’ emergency declaration, says Labor
Shadow Chief Treasury Secretary Pat McFadden said Chancellor Jeremy Hunt’s decision to make an emergency declaration was a sign of panic in government.
“I think this is evidence of the panic the government is in and the damage that has been done in recent weeks. Obviously ministers are now terrified of the market reaction,” he said. told BBC Radio 4’s Today programme.
“They concluded that they cannot wait until October 31. The country could not continue for the next two weeks on the path we have been on.”
In another apparent sign of the turmoil in the government, Work and Pensions Secretary Chloe Smith, who was due to perform a normal round of broadcast interviews this morning, failed to show up.
Statement from Jeremy Hunt this morning
Jeremy Hunt will deliver a statement at 11 a.m. before addressing the Commons at 3.30 p.m.
Recap: Pressure mounts on Liz Truss as three Tory MPs call on her to quit
Crispin Blunt, Andrew Bridgen and Jamie Wallis all called on the Prime Minister to step down on Sunday, while other parliamentary party figures expressed deep unease with Ms Truss’ leadership but refrained from calling on her to leave .
Mr Wallis accused Ms Truss of ‘very basic and avoidable mistakes’ while Mr Bridgen told the Telegraph the country ‘couldn’t go on like this’ and the British public ‘deserved better’.
Read the full summary here.