UK

Liz Truss has insisted “decisive action” by the government over its economic policies will help the UK going forward. Speaking to reporters, the prime minister said: “We have to look at what situation this country would be in if we hadn’t acted – people were facing fuel bills of up to £6,000, we had very

The Bank of England has launched a temporary bond-buying programme as it takes emergency action to prevent “material risk” to UK financial stability. It revealed that it would buy as many long-dated government bonds as needed between now and 14 October in a bid to stabilise financial markets in the wake of the mayhem that

The government has ruled out a U-turn on the costly tax-cutting mini-budget and the chancellor will not resign despite mounting pressure. It comes after a day in which the Bank of England was forced to launch a temporary bond-buying programme as it took emergency action to prevent “material risk” to UK financial stability. Bank’s ‘nearly

Shoppers are paying a record 10.6% more for food than they were a year ago, figures show. Overall shop price inflation accelerated to 5.7% in September, up from 5.1% in August, in another record since the British Retail Consortium-Nielson IQ index began in 2005. Food price inflation rocketed past last month’s 9.3% to 10.6%, driven

The collapse of the value of the pound in the wake of Friday’s mini-budget appears to have stalled, for now, but only thanks to market expectations that the Bank of England will still be forced to intervene. The rout for sterling, which began after Chancellor Kwasi Kwarteng revealed a £45bn tax cut plan on top

The pound has fallen to a record low against the dollar, sparking market speculation that the Bank of England may be forced to intervene. A statement from the bank was expected later on Monday after sterling slipped by nearly 5% earlier in the day to $1.0327 – building on fresh 1985 lows seen on Friday

The Bank of England says it “will not hesitate to change interest rates as necessary” after markets reacted badly to the chancellor’s tax-cutting mini-budget. In a statement, the Bank said it was “monitoring developments in financial markets very closely in light of the significant repricing of financial assets”. It came after the pound fell to

A freed British prisoner of war who was held by Russian-backed separatists has told Sky News how he was tortured over several days. John Harding said he was used as a “punching bag” by the guards in a holding facility in the self-declared Donetsk People’s Republic in eastern Ukraine. The centre was run by the

Labour will reverse the cut in the higher rate of income tax if it wins power at the next election, Sir Keir Starmer has said. Around 660,000 of the highest earners on more than £150,000 will benefit from the scrapping of the 45p rate, getting back on average £10,000 a year. Asked if Labour would

The Labour Party’s annual conference begins today – and policies on neighbourhood policing and clean energy are among those on the agenda. The Labour leader is seeking to set out the dividing lines between his party and the new Tory government during the four-day event. Speaking at a London Labour reception on Friday evening, Sir

This article was supposed to be a considered look at whether or not this mini-budget will generate the growth it was promising. It was supposed to be about whether it made sense to borrow so much money to finance tax cuts and whether this economic gamble (for a gamble it is) will actually work out.

The chancellor has denied suggestions he is gambling with the economy as his raft of tax cuts were met with a hostile reception – and sent the pound plummeting to a 37-year low. The Institute of Fiscal Studies (IFS) said he was “betting the house” by putting government debt on an “unsustainable rising path”. Only

Here are the key points from Chancellor Kwasi Kwarteng’s mini-budget statement to MPs: • The basic rate of income tax will be cut to 19p in the pound from April 2023. Will mean 31 million people will be better off by an average of £170 per year. • The 45% higher rate of income tax

Kwasi Kwarteng will promise a “new era for Britain” with a major package of measures to “turn the vicious cycle of stagnation into a virtuous cycle of growth”. The chancellor is set to announce tens of billions of pounds both of increased spending and of tax cuts when he delivers his mini-budget at around 9.30am

The interest rate has been raised to 2.25% – the highest level since the 2008 financial crisis. The Bank of England’s half a point hike followed a three-way split in the voting. Financial markets had widely expected the Bank to follow the US Federal Reserve last night with a 0.75 percentage points rise but economists

The mother of an unarmed black man who was killed by a police officer in south London has again called for justice after being shown the bodycam footage of his shooting. Chris Kaba, 24, was killed on 5 September after a police chase in Streatham Hill. His Audi was hemmed in by two police cars

Wholesale energy costs for businesses will be slashed by up to half their expected price through the winter months, the government has announced. Firms across the UK will see government-funded cuts to their energy bills in line with the reductions that have already been announced for homes. The level of discount will depend on what

Liz Truss has said she is prepared to be unpopular with her tax policy as she believes it will ultimately benefit the British economy. Talking to Sky News’ political editor Beth Rigby in New York, the prime minister defended any tax changes her government will make at the end of the week and said she

King Charles has flown to Scotland the day after the Queen’s funeral service. He left Aberdeen airport on Tuesday afternoon after flying in from RAF Northolt in west London. Pictures show the King in the back of an Audi leaving the Scottish airport. Yesterday his mother, Queen Elizabeth, was laid to rest alongside Prince Philip

The Queen’s coffin has begun its final journey following her state funeral as the nation fell silent to honour Britain’s longest reigning monarch. The King led members of the grieving Royal Family in a procession to Westminster Abbey, where world leaders were among the congregation at the hour-long service. A card in the flowers on