Kate Andrews is deputy editor of The Spectator’s World edition.
Alongside a rather defensive interest rate hike today, the Bank of England unveiled some alarming forecasts for economic growth. The BoE predicts the economy will be in ‘recession for a long period’ – until mid-2024 – with inflation peaking around 11 per cent. While the Bank is predicting that the recession will be shallower than
After yesterday’s fourth consecutive 0.75 percentage point interest rate rise from the Federal Reserve, the Bank of England has finally decided to follow suit. This afternoon the BoE announced a rate hike of 0.75 points too, the first rise of this size in 33 years. This takes UK interest rates from 2.25 per cent up to 3
There is no such thing as free money. This was learned the hard way last month, when investors made clear after Liz Truss’s mini-Budget that the era of cheap money was over. Mass borrowing for day-to-day spending was going to have a big premium attached: a bill so large that no government would want to
When Rishi Sunak entered No. 10 on Tuesday, he paid lip service to the aims of his predecessor. Liz Truss ‘was not wrong to want to improve growth in this country’, he said outside Downing Street. But ‘mistakes were made’ which is why he was installed as Prime Minister: to fix the economic fiasco that
The date of the fiscal statement has changed again. The Treasury has announced that the update – now being billed as an ‘Autumn Statement’ – will be pushed back from 31 October to 17 November, just six days earlier than the original date planned by Kwasi Kwarteng. Chancellor Jeremy Hunt said the delay means it will be based
In the coming weeks we’re going to learn a lot more about what went so badly wrong inside Liz Truss’s government. Indeed, my colleague James Heale is co-writing the book on it. As Rishi Sunak heads into No. 10 in a bid to undo some of the damage (‘mistakes were made…’ he said on the
On this morning’s Coffee House Shots, Fraser Nelson returned to the phrase he coined last Wednesday: ‘the muppet premium’. This premium, he said, summed up the additional borrowing costs markets were now demanding from the British government, having lost credibility for responsible and sustainable financing. Are there early signs that soon-to-be prime minister Rishi Sunak
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After Boris pulled out of the leadership race last night, all eyes are on Rishi Sunak who could be Prime Minister by lunchtime. Can Rishi rescue the Conservatives? Kate Andrews speaks to Katy Balls, James Forsyth and Fraser Nelson. Produced by Natasha Feroze.
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Kate Andrews, James Forsyth and Katy Balls discuss the surprise withdrawal of Boris Johnson from the Conservative leadership race.
This morning the BBC hosted a current Tory leadership contender and the leader of the opposition on Sunday with Laura Kuenssberg. Yet the most insightful comments came from one of the panel members: Lord Mervyn King, former governor of the Bank of England between 2003 and 2013. Asked by Kuenssberg about the narrative that’s doing
In the brief time Sajid Javid was chancellor to Boris Johnson, he spelled out to The Spectator his ‘low for long’ theory about rates: a theory which would enable the new prime minister’s ambitious spending agenda. Speaking to Fraser Nelson in December 2019, Javid was confident that the era of ultra-low interest rates and extremely
Next week we will have a new prime minister (again), but the economic problems facing the country will remain the same. This morning’s update from the Office of National Statistics shows public sector net borrowing was £20 billion last month: the second-highest borrowing September record and significantly higher than the Office for Budget Responsibility’s last
Liz Truss did not think that spending cuts would be a major part of her agenda. She and her first chancellor, Kwasi Kwarteng, were confident that markets, having lent Britain billions of pounds to cover the cost of the lockdowns, would be more than happy to do the same to transform the economy. Their argument
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Fraser Nelson, James Forsyth, Katy Balls and Kate Andrews discuss plans to stop spiralling inflation – and a spiralling government.
In all the recent economic chaos, it’s been easy to overlook one of the most important factors contributing to the cost-of-living crisis: inflation. But this morning’s update from the Office for National Statistics brings it back into focus, as CPI inflation rose back into double digits in September: now at 10.1 per cent on the
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28 per cent of the world’s fertiliser supply comes from Russia and Ukraine. Since war broke out in February, fertiliser prices have rocketed to record highs because of the disruption. British farmers are under pressure as the industry deals with higher energy costs at the same time; while consumers are facing higher food prices. Is
Jeremy Hunt set out at the start of the weekend with one goal in mind: that when the gilt markets reopened on Monday, the cost of government borrowing would not surge further. Ideally, it would start to fall. In this sense, it’s been a successful day for the new Chancellor. The Treasury’s early morning update
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Chancellor Jeremy Hunt gave a statement this morning in which he outlined plans to scrap ‘almost all’ the tax measures announced by his predecessor, Kwasi Kwarteng just four weeks ago. In one of the largest U-turns in history, the markets have become the most important force in British politics. James Forsyth, Katy Balls, Kate Andrews
When Jeremy Hunt took the role of chancellor last week, he was thought to have done it under instructions from Liz Truss that he was not to roll back any more of the mini-Budget. That instruction hasn’t stuck. Today’s update on the ‘medium-term fiscal statement’ was not so much a detailed plan to balance the
The government’s position has become so precarious – and its credibility with the markets so low – that even waiting another two weeks to announce the ‘medium term fiscal statement’ became too big a gamble. By moving the announcement forward to today, Jeremy Hunt is removing the uncertainty of creating a two-week gap between the
