Fylde MP Mark Menzies has posted the headline strategies which underpin Kwasi Kwarteng’s controversial ‘Plan For Growth’ which was outlined in his ‘Fiscal Event’ – which has been dubbed his ‘mini budget’. The tone of the Tory infographic provides support and backing for the plan.
However, the Chancellor Kwasi Kwarteng’s plans to cut taxes are deeply controversial and have sent the pound to record lows, along with expectations of an aggressive rates rises and pension funds being placed under pressure to sell bonds to stave off solvency. Adding further pressure, mortgage lenders have currently withdrawn 935 products (28.09.22) with Nationwide raising their two year fixed mortgage deal to 5.59%.
Today (Wednesday 28th September) the Bank of England (BoE) has been forced to stem a crisis in bond markets amid market turmoil that has sent government borrowing costs soaring. The central bank said it will launch a temporary UK government bond-buying programme as an emergency move to stave off a ‘material risk to UK financial stability’
The BoE said in a statement: ‘This repricing has become more significant in the past day — and it is particularly affecting long-dated UK government debt. Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability. This would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy.’