Ministers have discussed reducing the rate at which income tax relief is applied to Britain’s 5.5 million higher-rate taxpayers from 40p to a flat rate as low as 20p. Another option being considered is to increase the number of very high earners whose income tax relief is cut even further.
The total cost of pension tax relief to the Exchequer is £42.7 billion, of which £22.9 billion is relief on income tax and £19.8 billion is on National Insurance contributions.
On September 22 the Bank‘s Monetary Policy Committee (MPC) raised rates by 0.5 percentage points to 2.25%.
Speaking at the G30 annual international banking seminar, Mr Bailey said: ‚The UK Government has made a number of fiscal announcements and has set October 31 as the date for a further fiscal statement.‘
He said that the Bank‘s monetary policy committee ‚will respond to all this news at its next meeting in just under three weeks from now‘.
Under fierce fire from journalists, Ms Truss refused to apologise for ‚trashing‘ the Tories‘ reputation – before abruptly walking out after eight minutes and just four question.
Downing Street will now be waiting anxiously to see if the PM has done enough to cling on, but the early response was not promising, with one former Cabinet minister telling MailOnline the PM had been ‚robotic‘ and made the situation far worse.
(today, 08.36 am)
In der Konservativen Partei nimmt einem Bericht der Londoner „Times“ zufolge der Widerstand gegen die britische Premierministerin und Parteivorsitzende Liz Truss zu. Führende Torys würden eine Ablösung der Regierungschefin nach nur gut einem Monat im Amt diskutieren, schrieb die Zeitung. Es gebe Überlegungen, einen gemeinsamen Kandidaten bzw. eine gemeinsame Kandidatin für die Parteispitze aufzustellen. Das Bauernopfer könnte allerdings Finanzminister Kwasi Kwarteng sein.
9:28AM
Tory MP: ‚I have lost confidence in the Chancellor and the PM‘
The mood among some Tory MPs is particularly grim this morning.
One tells me they have now lost confidence in Liz Truss and Kwasi Kwarteng and that many MPs now believe the PM needs to be replaced.
They said: “I have lost confidence in the Chancellor and the Prime Minister for that matter. It is a total mess and there is no obvious solution.
“The vast majority of people [MPs] I speak to think she has to go.”
– Prime Minister Liz Truss and Chancellor Kwasi Kwarteng backtracked amid threat of losing Commons vote
Speaking to MPs in the Commons this morning, the Chancellor announced a £9bn support package of loans and tax relief, including a £200 energy rebate for every British household in October.
It comes as the energy regulator confirmed this morning that the price cap on energy bills for 22m households will jump by 54 per cent from April to about £2,000 a year because of soaring gas costs.
Sunak has long been seen as a rising star and is the person in the Treasury who No. 10 preferred to deal with. Sunak will be helped by the new No. 10/No. 11 special adviser unit. Sunak is a Brexiteer who has good relations both with the Prime Minister and his team. One insider suggests that their relationship will be a friendly one similar to that of David Cameron and George Osborne. What’s clear is that today’s changes mean No. 10 has taken control.
Although Mr Cummings was not in the room during fraught discussions with Mr Johnson, sources said it was ‚obvious‘ who was behind the move.
Following more than an hour of frantic wrangling, Mr Javid finally resigned in protest.
‚The prime minister said he had to fire all his special advisers and replace them with Number 10 special advisers to make it one team,‘ a source close to Mr Javid said.
Chancellor of the Exchequer Sajid Javid has resigned from his role in Boris Johnson’s cabinet.
It is believed Mr Javid was asked to stay on in his role, but resigned in protest at being asked to fire all his advisors.
Rishi Sunak has been appointed as the new Chancellor.