Liz Truss’s ‘favourite’ economist says chancellor ‘took his eye off ball’ and ‘overstepped the mark’ with mini-budget
Prime Minister Liz Truss’s external adviser on the economy has told Sky News that the chancellor had “taken his eye off the ball” and “overstepped the mark” with his mini-budget.
Gerard Lyons, who is often referred to as Ms Truss’s ‘favourite’ economist, said Chancellor Kwasi Kwarteng failed to adequately prepare the financial markets ahead of his announcement.
Speaking on The Take With Sophy Ridge, Mr Lyons said: “The chancellor, whilst he had focused on the general public and on British businesses, he had not really prepared the financial markets fully.
“And I think he had taken his eye off the ball slightly, shall we say, in having not prepared the markets for what he was doing in the budget and I felt that he overstepped the mark last week.
“So it was a combination of all three factors – the febrile markets because of the global backdrop, the actions of the Bank of England last Thursday but let’s be in no doubt, it was primarily the mini-budget last Friday that triggered this latest series of events.”
Asked if he had had any conversations with Ms Truss or her team, Mr Lyons said he had “made my thoughts known”. He said he was “highlighting in my writing… about the febrile state of the markets and the need to keep the markets onside”.
Pushed on whether they had taken his advice, he said: “Well, sometimes people listen, sometimes they don’t, but there were positives that came out of it. But as we saw last Friday, there was just not enough in line with what the markets had been prepped for and were expecting.”
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Gerard Lyons: Mini budget not what the markets were expecting
Despite his remarks, Mr Lyons said the budget was “very positive in many respects”.
He said it was “very much on a pro-growth agenda” which was needed to “break out of this low-growth phrase”.
Mr Lyons’s remarks about the chancellor failing to prepare the financial markets were contrasted by a minister who told deputy political editor Sam Coates it was “bulls***t” to say market movement was related to the mini-budget announcement.
And on The Take with Sophy Ridge, chief secretary to the Treasury Chris Philp denied the government had any responsibility and said there would be no change of course.
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Chief Sec bullish on tax cuts
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“Getting Britain’s economy growing is so important. Important to raise wages and important to pay the tax bills of the future,” he said.
Mr Philp suggested benefits may not be hiked in line with spiralling inflation. He said a commitment by former chancellor Rishi Sunak to uprate benefits in line with inflation was under consideration amid reports different government departments have been asked to draw up plans for efficiency savings.
Mr Philp told ITV’s Peston: “We are going to look for efficiencies wherever we can find them.”
But he said the Treasury would not commit to an expected uprating of benefits in line with inflation.
Pressed about the decision, he said: “I am not going to make policy commitments on live TV, it is going to be considered in the normal way, we will make a decision and it will be announced I am sure in the first instance to the House of Commons.”
On Wednesday the Bank of England was forced to launch an emergency government bond-buying programme to prevent borrowing costs from spiralling out of control and stave off a “material risk to UK financial stability”.
The Bank will buy as many long-dated government bonds as needed between now and 14 October in a bid to stabilise financial markets.
The announcement had an immediate effect on the market, with data showing 30-year bond yields fell back to 4.3%, having risen to levels above 5% not seen since 2002 earlier on Wednesday. There were similar falls for 20-year yields.
Ms Truss is expected to face public questioning about her economic plans for the first time on Thursday as she tours regional BBC radio stations in a morning round of interviews. Neither the prime minister nor the chancellor were anywhere to be seen on heard on the economy on Wednesday.
Police are investigating after a “number of people” were believed to have been attacked with pepper spray by a group of men who then fled.
Officers were called at 8.11am to a multi-storey car park at Terminal 3 following reports of multiple people being assaulted, said the Metropolitan Police.
A statement by the force said: “A number of people were sprayed with what is believed to be a form of pepper spray by a group of men who then left the scene.”
What we know so far
• Several assaulted with ‘pepper spray’
• One arrest – police hunt for more suspects
• Incident said to involve people known to each other
• Incident not being treated as terrorism
• 21 people treated by ambulance service – five taken to hospital
• Injuries not believed to be life-threatening
• Traffic disruption reported – but train lines since reopened
Live updates on Heathrow incident
Fire engines responding to the incident at Heathrow Airport. Pic: @_umarjaved
Armed police attended and one man was arrested on suspicion of assault. He remains in custody and enquiries continue to trace further suspects.
Police are not treating the Heathrow incident as terrorism.
London Ambulance Service also attended the scene and treated 21 people, including five who were taken to hospital. Their injuries are not believed to be life-changing or life-threatening.
There is currently some disruption to traffic in the area and Terminal 3 remains open.
Increased police presence
Commander Peter Stevens said: “At this stage, we believe the incident involved a group of people known to each other, with an argument escalating and resulting in a number of people being injured.
“Our officers responded quickly and there will be an increased police presence at Heathrow Airport throughout the morning, to continue enquiries and ensure the safety of those in the area.
“We are not treating this incident as terrorism. I understand the public’s concerns and would like to thank those in the area for their cooperation this morning.”
A person is detained at the airport. Pic: @_umarjaved
‘Significant incident’
The London Ambulance Service said a “significant incident” was declared.
There was a “full deployment” of resources and the ambulance service is treating it as ongoing.
A London Fire Brigade spokesperson said: “We were called at 8.14am today to assist emergency service colleagues at an incident near Terminal 3 at Heathrow Airport. Firefighters remain at the scene.”
Heathrow is advising passengers to allow extra time when travelling to the airport and to check with their airline for any queries.
There was disruption to train and Tube services, with some delays on the Elizabeth Line and the Piccadilly Line.
National Rail said on its website that lines had been reopened allowing trains to call at Heathrow “following the emergency services dealing with an incident at the airport”.
It said: “Although lines have now reopened, disruption is expected to continue whilst services return to normal, delays of up to 10 minutes and cancellations can be expected until 11.45am.”
National Highways East said on X: “A serious incident within the @HeathrowAirport Tunnel has resulted in the closure of the #M4 spur road southbound between M4 and J4A.
“@metpoliceuk responding. We’ll keep you updated.”
It later said: “Incident has been resolved and all closures lifted on the #M4 southbound @HeathrowAirport spur road between #M4 and J4A.”
People on social media have reported vehicles were being searched at the airport.
A user on X said there was a “major backlog of cars unable to leave the vicinity or enter the drop-off zone” at Terminal 3.
In footage on X, several armed police were seen in a car park.
England and Scotland fans have found out where their World Cup group games will be played when the tournament kicks off in June.
England, who are in Group L, will begin their tournament against Croatia in Dallas at 4pm EST (9pm BST) on 17 June. They will then go on to face Ghana in Boston at 4pm EST (9pm BST) on 23 June and Panama in New Jersey, New York, at 5pm EST (10pm BST) on 27 June.
Scotland are in Group C, and their first match will be against Haiti in Boston at 9pm EST on 13 June (2am GMT the following morning).
They will go up against Morocco also in Boston at 6pm EST (11pm GMT) on 19 June and then Brazil in Miami at 6pm EST (11pm GMT) on 24 June.
Fans are expected to rush to sort their travel and accommodation plans now that they know where and when the matches take place.
Read more: Unapologetically political – a World Cup draw like no other
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England and Scotland learn World Cup fate
Wales and Northern Ireland have yet to find out if they will qualify.
Wales must face a play-off against Bosnia and Herzegovina in Cardiff, then either Italy or Northern Ireland, if they are victorious.
If they beat these play-off opponents, they will secure their place in Group B alongside Canada, Qatar and Switzerland.
However, Northern Ireland will also be vying to guarantee their spot in the same group if they can beat Italy and then either Wales or Bosnia and Herzegovina.
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UK
World Cup 2026 – who England, Scotland, Wales, Northern Ireland and the Republic of Ireland will play
Scotland and England now know who they will face in the group stage of the next summer’s world cup.
But the fates of Northern Ireland, the Republic of Ireland and Wales won’t be determined until they compete in pre-tournament play-off matches in March.
England are in Group L along with Croatia, Panama and Ghana. Their first match will be against Croatia, who beat them in the semi-finals of the 2018 World Cup in Russia.
Pic: Reuters
Scotland’s first match will be against Haiti, in Group C.
Brazil and Morocco are the other Group C teams – both countries were also in the same opening group as Scotland in the 1998 World Cup in France.
Trump and Infantino at the World Cup draw
Wales have yet to find out if they will qualify as they must face a play-off against Bosnia and Herzegovina in Cardiff, and then either Italy or Northern Ireland, if they are victorious.
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If they can overcome these play-off opponents then they will secure their place in Group B along with Canada, Qatar and Switzerland. But Northern Ireland will also be vying and hoping to guarantee their spot in the same group if they can beat Italy and then either Wales or Bosnia and Herzegovina.
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‘Bring it on!’: Scotland fans react to World Cup draw
The Republic of Ireland also need to get through the play-offs first and are paired against the Czech Republic for their semi-final. Should Ireland win that match, they will need to beat either North Macedonia or Denmark to get to the finals where an opening group containing joint hosts Mexico, South Africa and South Korea awaits.
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