Jeremy Hunt held ‘meeting of minds’ with Andrew Bailey on economics

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England Governor Andrew Bailey said Friday he spoke with new Chancellor Jeremy Hunt and had a “meeting of minds” on the issue of “tax sustainability”.

He answered questions in Washington, saying: “I can tell you that I spoke with Jeremy Hunt, the new Chancellor, yesterday. I can tell you that there was a very clear and immediate agreement between us about the importance of fiscal the importance of taking steps to do so.”

He continued: “It is not appropriate for me to limit the choices he makes, but the very clear message I would give and it is a clear message for everyone, including a clear message to the markets. I can tell you that there is a very clear and immediate agreement on the importance of stability and durability.”

Earlier on Saturday, Mr Hunt warned that “tough decisions” will come about taxes and spending.

Speaking to Sky News, Mr Hunt, twice a candidate for Tory leadership, wasted no time criticizing the mini-budget, but endorsed the “fundamentals” of the drive for growth.

He added: “Spending will not increase as much as people want and there will be more efficiencies to be found and we will not have the rate of tax cuts we hope for, and some taxes will have to rise. That is the reality of the very challenging situation we are facing.”

While austerity is ruled out, Mr Hunt said the government will have to make “very difficult decisions” after the impact of the mini-budget to restore stability.

Live updates

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Starmer pays tribute to David Amess

Labor leader Sir Keir Starmer paid tribute to Sir David Amess on the first anniversary of his death.

He wrote on Twitter: “Remembrance of our friend and colleague David Amess, on the 1st anniversary of his senseless death.

“David’s commitment to public service, delivered with inherent, consistent kindness, will forever be admired.

“Thinking of his wife and children, hoping the memories of him will bring comfort.”

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Andrew Bailey held ‘meeting of minds’ with new chancellor

Bank of England governor Andrew Bailey said he met with new Chancellor Jeremy Hunt on Friday and had a “meeting of minds” on the issue of “fiscal sustainability”.

He answered questions in Washington, saying: “I can tell you that I spoke with Jeremy Hunt, the new Chancellor, yesterday. I can tell you that there was a very clear and immediate agreement between us about the importance of fiscal the importance of taking steps to do so.”

He continued: “It is not appropriate for me to limit the choices he makes, but the very clear message I would give and it is a clear message for everyone, including a clear message for the markets.

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“I can tell you that there is a very clear and immediate agreement on the importance of stability and durability.”

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Former Prime Minister pays tribute to Sir David Amess

Former Prime Minister Boris Johnson joined in tribute to Sir David Amess on the first anniversary of his assassination.

Johnson tweeted: “On this sad anniversary of the death of Sir David Amess, we remember the many good things he stood for: animal welfare campaigns, city status for Southend and independence for a sovereign parliamentary democracy. A legacy that shines.

“I’m thinking of Julia and the family.”

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Andrew Bailey had ‘meeting of minds’ with chancellor

Bank of England governor Andrew Bailey said he met with new Chancellor Jeremy Hunt on Friday and had a “meeting of minds” on the issue of “fiscal sustainability”.

He answered questions in Washington, saying: “I can tell you that I spoke to Jeremy Hunt, the new chancellor, yesterday. I can tell you that there was a very clear and immediate agreement between us on the importance of fiscal sustainability and the importance of taking steps to do that.”

He continued: “It is not appropriate for me to limit the choices he makes, but the very clear message I would give and it is a clear message for everyone, including a clear message to the markets.

“I can tell you that there is a very clear and immediate agreement on the importance of stability and durability.”

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Andrew Bailey warns that UK financial markets have experienced ‘violent moves’

The governor of the Bank of England said the UK’s financial markets have undergone “violent moves” in recent weeks.

In his Washington speech, Andrew Bailey said: “The UK financial markets have seen some violent moves in recent weeks, especially at the long end of the government debt market.

“This has highlighted the shortcomings in the strategy and structure of an important part of many pension funds.

“At the Bank of England, we have had to intervene to deal with a threat to the stability of the financial system, our other core objective.

“There may seem to be a tension here between tightening monetary policy as we should, including so-called quantitative tightening, and buying up sovereign debt to mitigate a critical threat to financial stability.

“This explains why we’ve been clear that our interventions on the last point are strictly temporary and designed to do the minimum possible or necessary.”

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Andrew Bailey warns of interest rate hike

The governor of the Bank of England had warned during a speech in Washington that “inflationary pressures” will likely require a “more vigorous response” than expected.

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Speaking at the G30’s annual international banking seminar, Andrew Bailey said: “The UK Government has made a number of fiscal announcements and has set October 31 as the date for a further fiscal statement.

He said the Bank’s monetary policy committee “will respond to all this news at its next meeting in just under three weeks.”

“I think this is the right order. By then we will know the full scope of fiscal policy, but I will repeat what I have already said: we will not hesitate to raise interest rates to meet the inflation target.

“And as things stand now, my best guess is that inflationary pressures will require a stronger response than we might have thought in August.”

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‘Smartest decision’ Truss made was the appointment of Jeremy Hunt

Lauren McEvatt, a former special adviser to the Conservatives under David Cameron, said the “smartest decision” Liz Truss made was to appoint Jeremy Hunt.

Ms McEvatt said: “The smartest decision Liz Truss has made in her entire premiership was the appointment of Jeremy Hunt yesterday. Conversely, it might have been the dumbest thing he’s ever done, take the job.”

She said Mr Hunt is an “adult” who understands what the job requires.

“What he said on the news this morning is very much a total reversal of everything that Liz Truss has been trying to achieve in recent weeks,” Ms McEvatt added.

“Mentioning that there will be cuts, mentioning that perhaps there should be tax increases.

“This is exactly what the market needed to hear to figure out how the hell the government was going to fill the £60m gap left… after the mini-budget.”

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Tory MP Tobias Ellwood Has Whip Restored

A high-ranking Tory MP has had the whip reinstated after being banned from his party for missing a confidence vote over the summer.

Tobias Ellwood, the chairman of the Commons Defense Committee, had the whip removed after failing to vote for Boris Johnson’s government in a confidence vote in July.

Mr Ellwood, a former government minister, had argued that he could not make the crucial vote as he struggled to travel back from a meeting with the president of Moldova.

At the time, he said he was “very sorry” that he did not make it to parliament on time.

On Saturday, the Bournemouth East MP tweeted that he was happy “to be off the (Odesa) naughty step and back in Pty as we enter this reset”.

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Scottish Labor leader declares party ‘ready’ for general election

Scottish Labor is ready for a general election, leader Anas Sarwar said.

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Speaking to UKTN Radio Scotland’s Good Morning Scotland program on Saturday, Mr Sarwar said the party is “not afraid” of elections, and that the British government under Liz Truss is at “the end of the road”.

His comments came as British Labor leader Sir Keir Starmer said the UK needs a general election.

Mr Sarwar backed up his calls and said: “I think it is clear that Liz Truss is a crippled Prime Minister. She is prime minister in name.

“Keir Starmer is absolutely right to demand a general election.

“He is also right to emphasize that we don’t just want this government to lose, we want to deserve to win.”

New polls published by YouGov on October 5 showed Scottish Labor won 31% of the vote in Scotland’s general election, an increase of nine points.

Sarwar, an MSP from Glasgow’s regional list, said improving polls has been his “focus” since he was elected leader following Richard Leonard’s departure in early 2021.

“That’s the focus I’ve had since I took over this job 20 months ago, and Keir Starmer has had it since he became leader of the UK Labor Party,” said Mr Sarwar.

“We both know the shortcomings of both the Scottish government and the British government led by the SNP in Scotland, the Conservatives in the UK, so how are we going to make a positive argument as to why people should vote for us?

“I am convinced that if we can show the people that Labor can win the next election, Labor will win the next election.

“Then we can show people how you’re going to reform and change the UK, that means strengthen Scotland, strengthen reforms or renew the UK, and have governments of the people. And that could mean big gains for us across the country.”

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Labor members say party has a ‘real chance’ of winning next election

Labor members have said their party has “a real chance” of winning the next election as they accused the Conservatives of “pulling ideas out of thin air”.

Following Sir Keir Starmer’s speech on Saturday, Bradford councilor Shakeela Lal said Labor now has “a real chance” of winning the next election.

She told the PA news agency: “We need to address the cost of living crisis.

“It will not be an easy solution. The country is in turmoil, the Tories are in crisis.

“From a Labor point of view (the mood is) positive, we have a real chance so we can start repairing the damage.”

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