UK Politics Thread part II

[Jimbuna]

Minister rejects U-turn on tax-cutting mini-Budget

A Treasury minister has rejected calls for the government to abandon last week's mini-Budget in the face of market turmoil.

Labour has called on ministers to ditch the proposals after they sparked a fall in the pound and a surge in borrowing costs.

But Financial Secretary to the Treasury Andrew Griffith said they were the "right plans" to grow the UK economy.

He claimed "every major economy is dealing with exactly the same issues".

Mr Griffith said the £45bn package of tax cuts announced last week would repair "underlying problems in the economy".

He added the Bank of England had "done their job" by announcing it would buy government debt to stabilise the economy.

Mr Griffith is the first minister to comment on the market turmoil in the last few days that has seen the pound drop to record lows against the dollar.

Chancellor Kwasi Kwarteng, who unveiled the tax-cutting package last Friday, is yet to speak publicly on the effect of the package on markets.

Speaking to broadcasters, Mr Griffith insisted the UK had a "very strong balance sheet" and one of the lowest debt to GDP ratios of major economies.

Asked whether the government had any plans to change Friday's measures, he replied: "We think they're the right plans, because those plans make our economy competitive".

"At the end of the day, that's ultimately what we've got to do," he said, saying ministers were focused on "getting on and delivering" its plans.
https://www.bbc.co.uk/news/uk-politics-63067163

[Jimbuna]

[Jimbuna]

The government is abandoning its plan to abolish the top rate of income tax for the highest earners following a growing backlash.

Chancellor Kwasi Kwarteng say "it is clear that the abolition of the 45p tax rate has become a distraction", adding "we get it, and we have listened"

The U-turn comes after several senior Tory MPs voiced their opposition to the plan, announced just 10 days ago in the mini-budget.

As the Conservative Party conference started in Birmingham on Sunday, Prime Minister Liz Truss vowed she would not abandon the policy.

But Kwarteng now insists he and the PM agree they must scrap the tax cut.

He adds the government can now "move forward with making the push for the growth plan", and says he has not considered resigning.

The proposal to scrap the rate paid by people earning over £150,000 a year had been criticised as unfair at time of rising living costs.

[Skybird]

No matter which country and capitol I look at these days, the sight is always the same: a madhouse. The staff and nurses are locked out, the patients run the institution and dress and pose as directors.


Reminds me of that movie "Stonehearst Asylum", based on E.A. Poe: "The system of Doctor Tarr and Professor Fether".

[Jimbuna]

[Jimbuna]

Irish Foreign Minister Simon Coveney has said he does not believe the dispute over the Northern Ireland Protocol will be solved within weeks.

The UK and EU are holding technical talks over the protocol on Thursday afternoon, in a bid to make progress.

The meeting will be via video link, with a timetable for further negotiations yet to be confirmed.

Mr Coveney is also due to meet Foreign Secretary James Cleverly on Thursday evening.

Earlier, Mr Coveney told the Dail (Irish Parliament) that his meeting with Mr Cleverly would "focus on timelines and subjects where we think it's possible to make progress sooner rather than later".

"I don't believe it's going to be possible to resolve the issues linked to the implementation of the protocol by 28 October," he added.

"But I do think we can make significant progress on some of the issues that really matter to the people of Northern Ireland - in particular to the unionist community and the business community."

Under current rules, if devolution is not restored by 28 October, Northern Ireland Secretary Chris Heaton-Harris is obliged to set a date for a fresh Stormont election.

He has rejected suggestions the government would delay the deadline if talks on the protocol have not made progress by then and said he would "push the button" on an election, if required.
https://www.bbc.co.uk/news/uk-northern-ireland-63151898

[Catfish]

From what i heard yesterday on DW my take is with the decisions Mrs Truss made, Labour looks like the better choice

However in the overall contest, please do not comment on the german government

[Skybird]

Originally Posted by Catfish

n the german government

It takes courage to call it that. A chancellor who claims to be a leader but flees from leadership at every opportunity, an economy minister who does not know economy or the small 101 of maths, and a finance minister who does not know the difference between debts and currencies, and money. Its no government cabinet, its a cabinet of curiosities.

[Jimbuna]

Originally Posted by Catfish

From what i heard yesterday on DW my take is with the decisions Mrs Truss made, Labour looks like the better choice

However in the overall contest, please do not comment on the german government

My assessment would be that the Tories have sunk to the same low level Labour already enjoy.

Basically, the UK population are stuck between a rock and a hard place.

[Jimbuna]

Nicola Sturgeon has said she will "never, ever give up on Scottish democracy" if UK ministers continue to reject plans for an independence vote.

The first minister wants to hold a referendum on 19 October 2023, but Prime Minister Liz Truss opposes this.

The Supreme Court is to debate whether MSPs could set up a vote alone, and Ms Sturgeon has said she could use a future election to settle the issue.

Ms Sturgeon said the "vast majority" of Scots would take part in any vote.
https://www.bbc.co.uk/news/uk-scotla...itics-63186284

[Jimbuna]

Liz Truss will hold a series of meetings with Tory MPs this week, as she tries to quell backbench unrest over her fledgling premiership.

Unease over the government's direction burst into the open at last week's party conference, which was blighted by internal division.

Cabinet ministers have been calling for backbenchers to unite behind the PM.

In a bid to repair relations, she has given a government post to a backer of her ex-leadership rival Rishi Sunak.

Greg Hands has been appointed trade minister, replacing Conor Burns who was sacked last week after a misconduct complaint.

And the chancellor has given the date when he further outlines his economic plan as 31 October.
https://www.bbc.co.uk/news/uk-politics-63194208

[Jimbuna]

Supreme Court asked to resolve question over indyref2 powers

The UK's highest court has been urged to resolve the "festering" issue of whether Holyrood can set up a Scottish independence referendum without the agreement of Westminster.

Two days have been set aside for the hearing at the Supreme Court in London.

The Scottish government's top law officer, Lord Advocate Dorothy Bain, argued it was in the "public interest" to settle the question.

But the UK government wants the court to refuse to rule on the case.

It argues that the question is beyond the court's jurisdiction – and that it could only give a judgement if the bill has been passed by MSPs.

First Minister Nicola Sturgeon wants to hold an independence referendum on 19 October 2023, but this is opposed by the UK government.
https://www.bbc.co.uk/news/uk-scotla...itics-63206302

[Jimbuna]

Chancellor Kwasi Kwarteng has been answering questions in the House of Commons, on the day of a fresh intervention by the Bank of England.

Meanwhile, the IMF has released a report suggesting the UK economic plan could increase growth but has inflation risks.

And PM Liz Truss has insisted she's still committed to the "growth measures" in last month's mini-budget, despite the Bank's latest move.

The Bank began an emergency plan to buy government debt after the "mini-budget" in late September - because investors were selling them off.

The government's plan to fund tax cuts with large borrowing spooked markets, with the pound plunging.

Many pension funds hold government bonds as they are traditionally seen as a very safe asset.

[Jimbuna]

The International Monetary Fund (IMF) has doubled down on criticism of the chancellor's mini-budget, days after warning it will fuel rising prices.

The body, which works to create global financial stability, admitted tax cuts announced by Kwasi Kwarteng would lift economic growth in the short-term.

But it said the cuts would "complicate the fight" against the cost-of-living crisis.

It also warned that "for many people 2023 will feel like a recession".

Inflation, which measures how the cost of living changes over time, is expected to peak at about 11.3% before the end of the year in the UK, according to its latest report on the outlook for the global economy.

The most recent figures included in the report by the influential financial institution do not fully, however, take into account the chancellor's recent mini-budget.

Economic growth in the UK is set to grind to a near halt next year, growing by 0.3%.

That marks a 0.2% downgrade from the IMF's July forecast, and a sharp fall from the 3.6% rate of growth for the UK economy expected in 2022.

The body, which works to stabilise the global economy, has also downgraded its economic growth forecasts due to the impact of Russia's Ukraine invasion.
https://www.bbc.com/news/business-63206733

[Jimbuna]

The UK economy unexpectedly shrank by 0.3% in August, the Office for National Statistics says.

It said the fall was because of a slowdown in manufacturing and in consumer-facing businesses such as hairdressers and hotels.

Analysts thought the economy would stall in August because of rising costs, but did not expect it to shrink.

The Bank of England has previously said that it expects the UK to fall into a recession by the end of the year.

This comes as the Bank of England warns investors its emergency bond-buying intervention - designed to stabilise the economy after the mini-budget - will end on Friday.

Prime Minister Liz Truss will appear at PMQs later - it'll be the first time she's appeared at the dispatch box since the mini-budget sparked market turmoil.