Politics

Read about the latest UK political news, views and analysis.

Wednesday

Robert Peston Robert Peston

Kwasi Kwarteng’s mini-budget continues to spook investors

If government bond sales by pension funds are the fundamental cause of a potential systemic crisis that could hurt us all, as the Bank of England says, why are pension funds taking so little advantage of the Bank’s offer to buy £65 billion of the bonds? And why are bond prices still falling? It seems to me the only explanation for what is happening is that margin calls on pension funds’ liability-driven investments (LDIs) – or the trillion pounds of their debt that’s secured against UK government bonds – are not, in fact, the main cause of the spike in bond yields, or at least they are only a small

Tuesday

Kate Andrews Kate Andrews

The Bank of England’s governor issues a stark warning

Speculation has been growing that the Bank of England might announce an extension of its emergency gilt-buying programme which is set to end on Friday. Despite the Treasury moving forward its ‘medium-term fiscal plan’ announcements from November to the end of this month, gilt yields have been rising yet again this week in the lead-up to the end of the scheme. It seemed likely that the Bank’s gilt-buying programme might be extended for another two weeks as a result, in order to buy time before the Chancellor Kwasi Kwarteng’s announcement on 31 October. But tonight Andrew Bailey put that speculation to bed. Speaking at the Institute of International Finance in Washington DC, the

Freddy Gray Freddy Gray

Meghan Markle’s podcast is about the word ‘crazy.’ And it’s barking mad

‘Calling someone crazy or hysterical completely dismisses their experience,’ says Meghan Markle in her strangely throaty professional podcast voice. ‘It minimises what they’re feeling. And you know it doesn’t stop there. It keeps going to the point where anyone who has been labelled it enough times can be gaslit into thinking that they’re actually unwell. Or sometimes worse to the point where real issues of all kinds get ignored. Well that’s not happening today.’ Cue the intro music – ‘I am woman, I am fearless, I am sexy’ etc. – to the latest episode of Archetypes, the Duchess of Sussex’s Spotify series. ‘I feel pretty strongly about this word crazy,’

Isabel Hardman Isabel Hardman

Kwasi Kwarteng’s easy ride

Tory MPs were in an anxious mood as they returned to the Commons this afternoon after weeks of conference recess and government meltdown. Their first session in parliament was, appropriately enough, Treasury questions, where they had a chance to air some of their anxieties with the Chancellor and his team. It could have been a much worse session for Kwasi Kwarteng, given the way things have gone recently. But the number of MPs seeking reassurance won’t have left him feeling very relaxed. Kwarteng told the Commons that his mini-Budget had been ‘really strong’ Kwarteng told the Commons that his mini-Budget had been ‘really strong’ and that MPs constituents would have

Kate Andrews Kate Andrews

What is the way out for Kwasi?

14 min listen

Parliament is back today and Kwasi Kwarteng is facing questions from the opposition as well as from those within his party. How much pressure is he under? Also on the podcast, looking ahead to another fiscal event at the end of the month, are we heading for a series of departmental spending cuts? What would our political team announce if they were Chancellor on October 31st? Katy Balls speaks to James Forsyth and Kate Andrews. Produced by Oscar Edmondson.

Steerpike Steerpike

EU chief blasts Brussels’ diplomats

The verdict is in: European Union diplomats are useless. But this isn’t the view of one of the EU’s usual detractors. It’s the assessment of Josep Borrell, Brussels’ very own foreign affairs chief. In a damning briefing to the European External Action Service, Borrell said he was fed up finding out information from newspapers before hearing it from his own officials. ‘Quickly for the European standard means a couple of months,’ said Borrell ‘This is not a moment when we are going to send flowers to all of you saying that you are beautiful, you work very well and we are very happy, we are one big family,’ Borrell said, before launching into his furious rebuke

Katy Balls Katy Balls

Labour prepares to fire up its election machine

Could a snap election be around the corner? That’s the message Keir Starmer relayed to party staff in a conference call this morning. He told those assembled that the economic turmoil following the Chancellor’s not-so-mini Budget means the government ‘could fall at any time’. As a result, his party needs to be election ready: ‘We have to recognise it is that unstable. We need to be ready. We need to get on an election footing straight away’. This isn’t the first time in recent months that figures in Labour have said they’re on an election footing – it’s a useful line to garner attention and rally the base. But this

Kate Andrews Kate Andrews

What’s causing the surge in borrowing costs?

When Kwasi Kwarteng stood up to deliver his mini-Budget last month, the assumption by the government was that the markets would jump for joy over its growth strategy. Less than three weeks later, the Bank of England is staging its third intervention to keep the UK’s bond market afloat, warning this morning of ‘material risk’ to the UK’s financial stability if markets don’t calm down soon.  After yesterday’s update – that the Bank would double its purchasing limit of long-term gilts from £5 billion per day to £10 billion as well as extending its gilt-buying scheme past the end of the week to allow banks to protect pension funds –

Anna Arutunyan

Putin’s acolytes are boxing him in

As Russia continues to get routed in eastern Ukraine – losing territory, machinery and personnel to an emboldened Ukrainian counteroffensive – infighting has intensified in the Kremlin. Looking for someone to blame, the various factions are increasingly attacking Defense Minister Sergei Shoigu and his Ministry, and seeking an escalation of hostilities in Ukraine.  When Russia lost the town of Lyman less than 24 hours after illegally annexing four regions that included it, Chechen leader Ramzan Kadyrov called for a tactical nuclear strike on Ukraine. He also lashed out against the General Staff, and threatened to send Central Military District Commander Alexander Lapin to the front to ‘cleanse his shame in blood’. While

Debbie Hayton

Teachers need help in the transgender debate

Which toilet should a trans pupil be allowed to use? Teachers like me have enough on our plates with the day job, but we must also face questions like this. Whatever our answer, we are bound to annoy someone. Yet for too long, ministers have shied away from offering a helping hand in this toxic debate. Unfortunately, it looks as though Liz Truss’s government is going to continue that unhelpful approach. Schools are in desperate need of clear guidance for helping include transgender pupils without compromising the rights of others. Activist groups have held sway for too long, and – as a teacher – it was a relief to hear the Department

Gareth Roberts Gareth Roberts

Liz Truss has a language problem

‘Grow the pie’. Somebody thought ‘grow the pie’ was The Thing, that ‘grow the pie’ was it. That this knockout phrase would silence the army of doubters and bring millions of voters back on side. They were proud of ‘grow the pie’. They thought ‘grow the pie’ was a great idea that people can really relate to and get behind. The same kind of person who thought reviving The Generation Game with Mel and Sue, or that Crown paint advert with the dead-eyed cult singing about ‘Hannah and Dave’ were notions of genius. Grow the pie – biff bang pow, now what’s your comeback to that, eh? Did they test

Emmet Penney

The West is on the road to energy ruin

Since the beginning of the Ukraine war and the sanctions it triggered, energy prices have skyrocketed. Liz Truss has warned that soaring energy bills are a ‘price worth paying’ in order to stand up against Vladimir Putin. President Joe Biden has called this year’s rocketing bills ‘Putin’s price hike.’ Margrethe Vestager, vice president of the European Commission, has encouraged Europeans to take short, cold showers to conserve energy. ‘When you turn off the water, say ‘Take that, Putin!’’ she urged. But are the high prices really Putin’s fault? He didn’t sanction himself, after all. It’s the West that chose to cut itself off from the Russian fossil fuels upon which it had

Monday

Steerpike Steerpike

Does the ‘anti-growth coalition’ run the Treasury?

‘Permanent revolution’ is the on dit in Whitehall these days – and what it means is that the Truss administration U-turns so often the whole machinery of government is constantly spinning round on its axis. The latest volte-face is the decision to appoint James Bowler, a 20-year establishment veteran, as Permanent Secretary to the Treasury. The Chancellor, Kwasi Kwarteng, declared himself ‘delighted to welcome James back to the Treasury,’ which is causing a few chuckles in SW1. The joke in Westminster today is apparently that the anti-growth coalition actually runs the Treasury It’s well-known that Kwarteng’s plan was to shake up the Treasury. Bowler represents precisely the sort of orthodox

Brendan O’Neill Brendan O’Neill

Morrissey is the rock’n’roll rebel we need

There was a truly electric moment at the Morrissey gig at the Palladium in London last night. Moz was introducing his new song, ‘Bonfire of Teenagers’. It’s about the Manchester Arena bombing in which 22 people were killed. He looked out at the audience and asked us a question. How come you know the name Myra Hindley but many of you won’t know the name of the man who bombed the Manchester Arena? People looked stunned. I believe some looked a little ashamed. It is rare indeed for hush to fall at a Morrissey concert, but it did then. It’s a question that demands an answer. Sounding a little emotional,

Owen Matthews

Who really blew up the Kerch Bridge?

Who blew up the Kerch bridge? One of President Zelensky’s most senior advisers, Mikhailo Podolyak, has suggested that the Russians did it themselves. ‘Isn’t it obvious who made an explosion?’ he asked on Twitter. ‘Truck arrived from RF (Russian Federation).’ Officially, the Ukrainian government is saying nothing: its secret service has said it will remain quiet until after the war. Zelensky himself has so far refrained from commenting on the attack, except to say that the ‘weather has been cloudy in Crimea.’ If indeed they were responsible, why would the Ukrainians not claim responsibility for a sabotage attack of high sophistication that caused widespread jubilation in Ukraine and across the world? The

Katy Balls Katy Balls

Truss U-turns on Treasury appointment

When Kwasi Kwarteng sacked Tom Scholar as permanent secretary at the Treasury, it was taken as the clearest indication yet that he was determined to shake up the so-called Treasury orthodoxy. Unlike previous Tory governments, Liz Truss and her Chancellor would take on the economic consensus. Only one month in and they appear to be having second thoughts. Scholar’s hasty departure was cited as one of several factors that contributed to the markets responding badly to the Chancellor’s not-so-mini-Budget. Now the government have announced Scholar’s successor: James Bowler, currently Permanent Secretary for the Department for International Trade (DIT). Bowler can’t exactly be described as an insurgent. He has plenty of

Jonathan Miller Jonathan Miller

Why is Liz Truss playing Emmanuel Macron’s game?

Is Emmanuel Macron a friend of the United Kingdom? Liz Truss said over the summer that she didn’t know, which was a reasonable response in the circumstances. This is a president surrounded by close advisors who hold Britain in barely disguised contempt. Other than a brief pretend bromance with Boris Johnson, whom Macron promptly knifed in the back and called a clown, the president threatened to cut the electricity interconnection between France and Britain in a row over fish. His government takes millions from Britain in return for pretending to stop boatloads of migrants launching themselves across the channel. Macron has described Nato as brain dead and fantasised that its

Kate Andrews Kate Andrews

Will Kwarteng’s fiscal plan calm the markets?

Chancellor Kwasi Kwarteng has written to the Treasury select committee this morning, announcing that the date of his medium-term fiscal plan is moving forward by almost a month: from 23 November to 31 October. Mel Stride, the committee’s chair, tweeted the letter in full, adding that he ‘strongly welcome[s]’ the move (which, he says, he had ‘pressed so hard on’) in the hope that an earlier update will help mitigate rising borrowing costs. It’s a rather unsurprising announcement from the Chancellor. Despite doubling down on his original November date at the Conservative party conference, no one realistically thought that timeline would last. While the pound has jumped back to its

Mark Galeotti Mark Galeotti

Putin’s attack dog brings a terrible type of warfare to Ukraine

The Crimean Bridge bombing was an unwelcome gift to both Vladimir Putin – who had celebrated his 70th birthday the day before – and the new overall commander of the ‘Special Military Operation,’ General Sergei Surovikin. Today, they returned the favour with a missile bombardment of Kyiv and other major cities of the like not seen since the start of the war. Missiles and kamikaze drones hit a range of targets, some perhaps considered strategic in the loosest sense such as bridges and railway hubs, but most entirely civilian. The west of the country, which has largely avoided the worst of Russian attacks, also came in for an indiscriminate pounding.