Speaking to reporters on her flight to New York, she appeared to defend the much-criticized proposal to lift the cap on bankers’ bonuses, saying: “Not all measures will be popular.” She also said that as Prime Minister she would be willing to explicitly argue that “increasing the size of the pie” (ie, growing the economy) is more important than ensuring its fair distribution. This is a view shared by many Conservatives, but most of Truss’s recent predecessors as party leader would not have said it as bluntly as Truss is willing to do (for example, in her interview with Laura Kuensberg two years ago weeks). My colleague Pippa Crerar has a full record of what Truss told reporters last night about her desire to boost growth through tax cuts here . Important events BETA filters Key Facts (11) Liz Truss (11) Michelle Donelan (5) Emmanuel Macron (3) Pippa Crerar (3) Ed Balls, Gordon Brown’s all-powerful adviser when Brown was chancellor and then shadow chancellor when Ed Miliband was Labor leader, is having an “I told you so” moment on the subject of the proposed UK trade deal. (See 9.44am) Here is an excerpt from the conclusion of the report, written in 2018. Despite the enthusiasm expressed by politicians on both sides of the Atlantic, officials directly involved and experts with experience of such negotiations express skepticism that an agreement of any significance can be reached… The bottom line is clear: a USUK FTA is only going to happen if the UK makes concessions that are unlikely to be politically acceptable and, in any case, promise relatively limited upside for UK business. However, the importance of such a deal to the overall Brexit narrative (and, in particular, to the case for leaving the customs union) means that the government is likely to continue to behave as if negotiating an attractive deal with the EU remains a realistic possibility. USA. Updated at 14.17 BST
Commons Finance Committee says it is ‘vital’ to receive new OBR economic forecasts alongside ’emergency budget’ on Friday
On Friday Kwasi Kwarteng, the new chancellor, will announce a raft of tax cuts expected to total at least £30bn. As a tax package, it will be far, far bigger than anything in any recent budget, but the Treasury insists it is a “fiscal event”, not a proper budget. The official explanation for this is that Kwarteng is acting quickly to implement promises made by Liz Truss in the Tory leadership contest and that a full budget would take longer because it would have to include a myriad of other decisions (such as cigarette duty etc. ). But a full budget would also require the Office for Budget Responsibility to publish a new economic forecast, and there are suspicions that Kwarteng is avoiding a budget this week because he does not want OBR figures to be published that undermine his policy announcements. In the summer, Liz Truss’s leadership campaign told reporters her “emergency budget” would not be accompanied by a new OBR forecast, and Kwarteng said nothing to suggest Truss had changed her mind or that the OBR figures would be released on Friday. The OBR told the Commons Treasury committee in a letter that it could, if necessary, provide a forecast this week, even if it normally takes longer to prepare. Today, Mel Stride, the Conservative MP who chairs the Commons Finance committee, published the text of an open letter to Kwarteng saying he should publish an OBR forecast on Friday. Stride said: As a committee, we have previously stated in the House that we consider it very important to announce significant changes to taxation in a budget event alongside an OBR forecast. These forecasts are a vital indicator of the health of the country’s finances and provide reassurance and confidence to international markets and investors. There is a deterioration in our economic outlook since the last OBR forecast in March. There have been major fiscal interventions since then, and we’re told there will be further major interventions, including major permanent tax cuts to be announced on Friday. In these circumstances, it is vital to provide an independent OBR forecast. Like all select committees, the Finance Committee has a government majority. My colleague Heather Stewart says not publishing a new forecast for the OBR on Friday would be shocking and a betrayal of what former Tory chancellor George Osborne intended when he created the OBR in the first place. So they should – they can’t help but find it amazing the new chancellor is preparing to throw £100bn+ into energy markets and overhaul the tax system, without any independent assessment of the impact on the economy/public finances. https://t.co/9Y1UR0l9ju — Heather Stewart (@GuardianHeather) September 20, 2022 Here’s George Osborne, on the creation of the OBR in 2010: “I recognize that this will create a bar for my back down the line and the backs of future Chancellors. That’s the whole point.”[from this speech] https://t.co/xockGMWAJu — Heather Stewart (@GuardianHeather) September 20, 2022 Updated at 14.04 BST
The Scottish Government has been accused of failing to tackle the A&E waiting time ‘crisis’
Severin Karel Opposition leaders at Holyrood called for urgent action after Scotland recorded its worst accident and emergency waiting times, with less than 64% of patients seen within four hours last week. Labour, the Lib Dems and the Conservatives said figures from Public Health Scotland showed hospitals were “overstretched” and accused Health Secretary Humza Yousaf of failing to act. The figures showed almost 10,000 people waited for more than four hours before being seen last week, 3,400 for at least eight hours and 1,257 for more than 12 hours. NHS Forth Valley, which covers Falkirk and Stirling, had a four hour rate of 38.3%. NHS Lanarkshire, which covers towns such as East Kilbride and Hamilton, 51.9% and NHS Fife 56.2%. NHS Lanarkshire has a warning to patients on its website which says: “Our services are under EXTREME PRESSURE” and urges people with non-critical injuries to call an NHS helpline first. Jackie Bailey, Scottish Labour’s deputy leader, said: Today’s appalling statistics are proof positive of the life-threatening inaction of this SNP government. [While] NHS frontline staff work tirelessly around the clock, Humza Yousaf has completely failed to make any meaningful effort to address the underlying problems or control this crisis. If we are to avoid a full-blown humanitarian crisis this winter, then the government must act now. Yousaf said hospitals across the UK were struggling to cope, but said the NHS had received an extra £50m to improve emergency care. He added: However, I am clear that the current level of performance is not acceptable, so I am determined to improve performance and am working closely with councils on a range of measures to reduce pressure on hospitals. Updated at 1.48pm BST The first biography of Liz Truss will be published in time for Christmas, according to one of its authors, James Heale, the journal editor of the Spectator. He is working on the book with Harry Cole, the Sun’s political editor. Lord Ashcroft, the former Tory deputy leader, is also writing a biography of Truss. She will come out later, because she wants to cover the first year of her term.
‘Not every measure will be popular’ – Truss admits voters may not like all pro-growth measures
Liz Truss has said she is willing to implement unpopular policies in her bid to boost growth in the UK. Speaking to reporters on her flight to New York, she appeared to defend the much-criticized proposal to lift the cap on bankers’ bonuses, saying: “Not all measures will be popular.” She also said that as Prime Minister she would be willing to explicitly argue that “increasing the size of the pie” (ie, growing the economy) is more important than ensuring its fair distribution. This is a view shared by many Conservatives, but most of Truss’s recent predecessors as party leader would not have said it as bluntly as Truss is willing to do (for example, in her interview with Laura Kuensberg two years ago weeks). My colleague Pippa Crerar has a full record of what Truss told reporters last night about her desire to boost growth through tax cuts here .
Higher energy bills are a price worth paying for UK security, says Truss
Higher energy bills are a price worth paying to keep the UK safe from foreign attackers, but the cost should not be passed on to landlords, Liz Truss said. My colleague Pippa Crerar has the story here. At the Downing Street lobby briefing, the No 10 spokesman said that as well as a bilateral meeting later today with French President Emmanuel Macron, Liz Truss will also have one with Japanese Prime Minister Fumio Kishida. Truss also has a meeting with Gitanas Nausenda, the president of Lithuania. And he will visit the Ukrainian Institute of America, where he will meet Olena Zelenska, the first lady of Ukraine, as well as Ukrainian Foreign Minister Dmytro Kuleba and Prime Minister Denys Shmyhal. At the Truss institute he will see a report on Russian war crimes. James Cleverley, the foreign secretary, is also in New York for the UN General Assembly (UNGA). Today he will have his first meeting in his new position with his American counterpart, Anthony Blinken Updated at 13.01 BST And while we’re on the subject of people “overdoing it” (see 11.37am), my colleague Jennifer Rankin, the Guardian’s Brussels correspondent, says Labor is wrong to portray the government’s failure to strike a trade deal with US as a painful blow to the economy (see 9.40am). I…
