Darren Jones says ‘markets always respond to budgets’ and says Office for Budget Responsibility reviewed plans as extra borrowing sees markets jitterThe UK is in a “very different world” compared with the turmoil which followed Liz Truss’s economic plans, a minister has said as the government seeks to quell post-budget market jitters.The scale of extra borrowing in Rachel Reeves’s budget – around £32bn a year on average – saw yields on government bonds increase as the market responded to the chancellor’s plans. The value of the pound has also fallen against the dollar after Labour’s first budget in more than 14 years.Completely different in contrast to now: We’ve got verified reports from the independent Office for Budget Responsibility that say we meet our fiscal rules earlier than had been planned originally, 2027-2028, that those tough fiscal rules means there is a fiscal consolidation and that strong approach to public spending. We’re in a very, very different world.”Yes, but the question in the manifesto, the promise in the manifesto, was not to increase the rate of tax that employees pay in their payslip.It says that we make a promise to working people, that’s people who go to work and get a payslip, that we will not increase income tax or national insurance.”Rachel Reeves has been warned an extra £9bn of tax rises may be required to avoid a fresh austerity drive in key public services as her record tax-raising budget sent tremors through the financial markets. Threatening to undermine the chancellor’s claim that her budget would restore economic stability to Britain, government borrowing costs rose sharply in the City on Thursday as traders turned on Reeves’s tax and spending measures.Reform UK is facing a schism over its approach to Tommy Robinson’s supporters, after two high-profile party figures said it was wrong to disavow those who went to a weekend rally backing the far-right leader.The Independent Schools Council (ISC) has said it will launch legal action against the government’s decision to impose VAT on independent school fees. The council, which represents more than 1,400 private schools in the UK and abroad, reached its decision after a board meeting held on Thursday.More than half of people expect the number of those living in poverty to have risen by the end of the government’s current term, according to a study. Four in 10 Labour voters expect this to be the case by 2029, the research from King’s College London (KCL) and the Fairness Foundation suggested. Continue reading…
Source link : https://www.theguardian.com/politics/live/2024/nov/01/markets-labour-budget-treasury-rachel-reeves-uk-politics-latest-updates
Author : Amy Sedghi
Publish date : 2024-11-01 09:53:10
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Treasury minister says markets have ‘PTSD’ from Liz Truss’s budget – UK politics live
