Kwasi Kwarteng announces new date to reveal plan to reduce massive gov debts in bid to calm markets after Tory pressure
KWASI Kwarteng is to reveal the horrors of the nation’s finances on Halloween.
The Chancellor brought forward publication of an independent review of the numbers to October 31 — as experts warned he must cut £60billion to balance the books.
Sterling yesterday slumped back to 1.10 against the dollar and the cost debt rocketed in a fresh blow for the economy.
In a letter to MPs, Mr Kwarteng revealed his "Medium Term Fiscal Plan" will now come on October 31 instead of November 23.
The interest the Government pays on loans was at its highest point since the Bank of England stepped in two weeks ago to calm markets in the wake of the mini Budget.
In a bid not to spook the markets further, Mr Kwarteng will set out his strategy to get debt falling alongside the Office of Budget Responsibility’s delayed forecast.
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The Treasury will be praying the package will stop the Bank of England dramatically raising mortgage repayments when they meet days later to set interest rates.
Mr Kwarteng planned to set out his medium-term plans on November 23, but — still reeling from his disastrous mini Budget — caved to pressure to act sooner.
Last night, Treasury Select Committee chair Mel Stride “strongly” backed the move.
And ex-Cabinet minister Grant Shapps called it a “belated but sensible move”.
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But Labour deputy leader Angela Rayner tweeted: “Trick or cheat? The Tory horror show rattles on.”
It came as economists said Mr Kwarteng will have to find cuts of more than £60billion to help get public finances back under control.
Analysts at the Institute for Fiscal Studies say major cuts cannot be delivered through efficiency savings and “trimming the fat” alone.
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And a study by investment bank Citi says the economy will grow by an average of 0.8 per cent for the next five years — far short of the Chancellor’s desired 2.5.
Ministers will today try to ram the reversal of Rishi Sunak’s National Insurance hike through the Commons in one day. Labour plans to vote with the Government.