Prime Minister Liz Truss has insisted the government’s tax-cutting measures are the “right plan” to get the economy growing in the face of rising energy bills, despite recent market turmoil.
Chancellor Kwasi Kwarteng's announcement of his mini-budget on Friday has been met with wide criticism and mounting calls – including from the International Monetary Fund (IMF) – for a U-turn on some of the policies announced after the pound sunk to a record low of 1.03 against the US dollar on Monday.
On Wednesday, the Bank of England launched an emergency government bond-buying programme to prevent borrowing costs from spiralling out of control and stave off a “material risk to UK financial stability”. But, in her first public comments since the mini-budget market chaos, Ms Truss defended Chancellor Kwasi Kwarteng’s measures, insisting “urgent action” was needed, although she admitted the government’s decisions have been “controversial”.
