Kwasi Kwarteng will present the new government’s approach to the economy this morning, pledging to “turn the vicious circle of stagnation into a virtuous circle of growth”.
Ahead of his mini-budget, the Chancellor issued a warning to the Governor of the Bank of England.
He told Andrew Bailey that claims that inflation near double digits was mainly due to the war in Ukraine were less credible now that the government had moved to contain energy bills – a blow to the balance sheet of the Bank in controlling inflation.
The letter to Mr Bailey marked a change in tone from former Chancellor Rishi Sunak.
Mr Kwarteng’s ‘unabashedly pro-growth’ stance has led to speculation over sweeping tax cuts in today’s mini budget. Read what should be announced.
As a business editor Szu Ping Chan reports, Mr Kwarteng is expected to announce two “rabbits out of the hat” that have not been reported before.
Reporting is due to begin around 9:30 a.m. Follow live updates with James Warrington.
Meanwhile, experts have warned home sales could soon plunge as mortgages appear to become the most unaffordable on record since 1990.
The Bank of England raised the bank rate by 0.5% to 2.25% yesterday, the highest level since 2008.
Melissa Lawford reports on what soaring interest rates mean for the price of your home and Rachel Mortimer explains how you can lower your mortgage costs.
And Ambrose Evans Pritchard argues it’s time to batten down the hatches because “overzealous central banks are making another horrible mistake.”
Your view: Earlier this week, we asked you if you think Liz Truss is on the right track to lead the country through the cost of living crisis. Here are some of the best responses from your fellow readers.
Rayner reveals what the Commons memo said about Queen
The mysterious notes passed urgently between MPs in the Commons offered the first public indication that something was wrong.
Prime Minister Liz Truss, who had just made a statement on energy, received a square-folded memo. A similar note was forwarded to Angela Rayner, Sir Keir Starmer’s deputy.
Shortly after, Buckingham Palace announced that the Queen was ill. Senior members of the royal family rushed to his side. Her Majesty died a few hours later.
Ms Rayner has now revealed the contents of the note she passed on to Sir Keir and the dilemma she faced as she considered how to cut him off in full view of TV cameras.
Meanwhile, Labor members are invited to sing the national anthem at the party conference this weekend.
Can you solve this GCHQ puzzle for kids?
You don’t have to be top of the class to be a spy, the head of GCHQ says, as the agency releases its first children’s puzzle book.
Sir Jeremy Fleming said it was a “myth” that everyone at Britain’s cyber spy agency was good at puzzles.
Marking the release of GCHQ’s first puzzle book aimed specifically at children, the agency released a bonus puzzle that took over a century to crack. Try the puzzle for kids.
Daily dose of Matt
Mast see the fun side of fracking in today’s cartoon and watch our latest political cartoon from Davey.
Also in the news: Other headlines from this morning
“Back to the Dark Ages” | The entire rail network will come to a halt next month, with passengers facing three strikes in the space of a week. Around 40,000 members of the Rail, Maritime and Transport Union will walk out on October 8, capping a week of misery on the railroads. Aslef’s action has already been confirmed for two more days. Dominique Penna reports how the combined action should cause serious disruption.
Around the world: the “invisible war” finally hits home
Until this week, Vladimir Putin’s war in Ukraine was almost invisible to most Muscovites. This illusion collapsed following the speech of the Russian leader announcing a partial mobilization. For millions of people who had ignored the conflict, the war in Ukraine suddenly went from almost invisible to urgent and personal. Read the dispatch from our special correspondent from Moscow. It comes as four regions of Ukraine controlled by pro-Moscow forces prepare to hold referendums on joining Russia today, a move widely condemned as illegitimate. Follow the latest.