Truss and Kwarteng to meet fiscal watchdog today after MPs demand full economic forecast
Liz Truss and Kwasi Kwarteng will meet the head of the UK’s independent fiscal watchdog today amid the fall-out from the government’s mini-budget.
The talks with the Office for Budget Responsibility (OBR) come after a week of economic turmoil following last Friday’s announcements, which saw the pound plunge, mortgages rocked and pension funds needing to be saved.
It is highly unusual for a PM to attend an OBR meeting – which is usually held between the independent watchdog and the chancellor to discuss upcoming economic forecasts – but the Treasury has denied that this is an emergency measure.
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The OBR was set up by the government in 2010 to provide independent analysis of the UK’s public finances.
Financial Secretary to the Treasury Andrew Griffith said it was “a very good idea” for the meeting to take place, but former Bank of England deputy governor Sir Charles Bean told Sky News “there is an element of closing the stable door after the horse has bolted”.
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Senior Tory blames mini-budget for turmoil
The news came hours after the Treasury Select Committee, made up of MPs from all parties, demanded that the chancellor release a full economic forecast from the OBR by the end of October.
He is also being urged to bring forward his medium-term budget from 23 November.
Mr Griffith hinted to Sky News that a report could come sooner, saying the independent OBR has “got to be given the freedom and ability to do that”.
But, he added: “That’s a decision for them. It’s not for me or anyone else to dictate that to them.”
Ms Truss and Mr Kwarteng have said they are still committed to their policies – and argue that a £45bn package of tax cuts is the “right plan” for the economy.
But Labour’s shadow business secretary Jonathan Reynolds said the mini-budget was “without question one of the biggest unforced errors in policymaking in this country’s history”.
He reiterated the demand of his and other opposition parties to recall parliament and reverse the fiscal measures.
No independent OBR forecast accompanied last week’s announcements – but the watchdog said it had prepared a draft for the new chancellor on his first day in office.
The absence of this forecast reportedly contributed to concerns in the City.
Mr Griffith insisted a forecast last Friday would not have been able to “reflect [the] economic growth in their numbers” that he claimed would come from government policies, as the measures would have been “finalised in the hours before the chancellor stood up”.
But Mel Stride, Conservative chair of the Treasury Select Committee, had said in his letter to the chancellor it is “hard to conclude other than that an absence of a forecast has in some part driven the lack of confidence in markets”.
He added: “Some have formed the unfortunate impression that the government may be seeking to avoid scrutiny, possibly on account of expecting the OBR forecast to be unsupportive of the achievement of the economic outcomes the government expects from the Growth Plan, including 2.5% trend growth in the medium term.”
Sir Charles agreed, saying the lack of forecast was “clearly one of the factors that is contributing to the market turmoil”.
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Chancellor ‘sticking with growth plan’
Mr Kwarteng had said the forecast would be released on 23 November – but after last Friday’s mini-budget caused economic turmoil, the committee discovered the chancellor will be getting an initial OBR forecast on 7 October.
They asked him to publish “without delay” the initial economic and fiscal forecast the OBR provided to him when he started the job a few weeks ago.
A reply from the chancellor has been requested for no later than Monday.
Mr Stride also expressed frustration in his letter at having pressed Mr Kwarteng and his predecessor Nadhim Zahawi to publish an OBR forecast before the mini-budget and said the OBR had assured him on 26 August that it could produce a forecast to that timescale and had already been working on it for a month.
“The OBR was standing by ready to provide a meaningful forecast alongside the 23 September statement had the Treasury requested it. No such request was received,” Mr Stride said.
Mr Stride said he was pleased to see the OBR meeting happening.
“The PM and the chancellor must use this meeting as a reset moment – an opportunity to urgently bring forward the OBR forecast incorporating credible new fiscal rules and a plan which the OBR assesses as having a good chance of meeting them.
“Then we can all take a deep breath and start to move forward with greater confidence.”
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The senior Tory told Sky News’ Daily Podcast earlier on Thursday: “Many colleagues are very concerned, and I think that’s totally unsurprising.
“I mean, I can speak for myself. I’m on the record as saying that I think if we’re not very careful, then our position as being the party of sound money and economic responsibility, fiscal responsibility, may be in jeopardy.”
Mr Stride added that he did not think it was incompetence that caused the current problems and suspects “some of those involved have been taken slightly by surprise how quickly the markets turned” but he thinks publishing an OBR forecast would be central to calming the markets by “demonstrating credibility”.
A YouGov poll for The Times shows Labour has opened up a massive 33-point lead over the Conservatives.
Tory MP Sir Charles Walker admitted his party would be “wiped out” if an election was called tomorrow – and “would cease to exist as a functioning political party”.
Mr Griffith tried to urge calm within his party, telling Sky News: “This is a difficult time for all developed economies and for all governments. This is a government that’s taken decisive steps to deal with the immediate energy crisis.”
But former Bank of England top brass Sir Charles took issue with the government’s focus on energy bills and the war in Ukraine, saying: “If all the government had announced last Friday was the energy price guarantee… I don’t think there would have been a problem with there not being an accompanying forecast because those support measures are intended to be temporary and will be self-terminating when wholesale energy prices fall back.
“The thing that created the problem, in my view, was the fact alongside that the chancellor chose to announce the rolling back of National Insurance increases and the slated increase in corporate taxes… and those are intended to be permanent, so they potentially have implications for the sustainability of the public finances.”
Donald Trump has landed in Scotland for a four-day trip including high-level meetings – praising Sir Keir Starmer as “a good man” but calling illegal migration a “horrible invasion” that is “killing Europe”.
Crowds gathered at Prestwick Airport in Ayrshire amid a major security operation for the US president’s visit.
Mr Trump told reporters: “I like your prime minister. He’s slightly more liberal than I am… but he’s a good man… he got a trade deal done. It’s a good deal for the UK.”
The pair are expected to discuss potential changes to the UK-US trade deal which came into force last month.
Trump left Air Force One to head to Turnberry, one of his Scottish golf courses. Part of the trip will include the opening of another course in Aberdeenshire, billed as “the greatest 36 holes in golf”.
Trump supporters waved as Air Force One landed. Pic: PA
“There’s no place like Turnberry. It’s the best, probably the best course in the world. And I would say Aberdeen is right up there,” the US president said.
“Sean Connery helped get me the [planning] permits. If it weren’t for Sean Connery, we wouldn’t have those great courses,” he added.
During the trip, President Trump will also hold discussions with Scotland’s First Minister John Swinney and EU Commission President Ursula von der Leyen, who is keen to secure a trade deal with the US.
Donald Trump spoke to reporters after landing at Prestwick Airport, Ayrshire. Pic: AP
Mr Trump told reporters there was “a good 50-50 chance” of an agreement with the EU but added there were “maybe 20 different” sticking points.
EU diplomats say a deal could result in a broad 15% tariff on EU goods and half of the 30% Trump is threatening to impose by 1 August.
He travelled to Turnberry, one of his Scottish golf resorts, amid tight security. Pic: Reuters
The US president touched on illegal immigration and gave European leaders a stark warning.
“You better get your act together or you’re not going to have Europe anymore. You got to get your act together,” he said.
“But you’re allowing it to happen to your countries and you got to stop this horrible invasion that’s happening to Europe. Immigration is killing Europe.”
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What do Scots think of Trump visit?
He was also scathing about the installation of wind turbines across the continent.
“Stop the windmills. You’re ruining your countries,” he said. “It’s so sad. You fly over and you see these windmills all over the place, ruining your beautiful fields and valleys and killing your birds.”
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Domestically, Mr Trump faces the biggest political crisis of his second term in office over his administration’s handling of files linked to disgraced financier and sex offender Jeffrey Epstein, who died in prison in 2019.
He faced another round of questions after stepping off Air Force One.
“You’re making a big thing over something that’s not a big thing. I’m focused on making deals, not on conspiracy theories that you are,” he said.
Mr Trump added that “now’s not the time” to discuss a pardon for Ghislaine Maxwell, Epstein’s imprisoned accomplice.
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Trump in Scotland amid Epstein storm
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While the president’s visit did attract some enthusiastic flag-waving supporters at Prestwick Airport, he is also likely to trigger a number of protests, prompting Police Scotland to call in support from other forces in the UK.
The Stop Trump Scotland group has planned demonstrations on Saturday in Edinburgh, Aberdeen and Dumfries.
About 70% of Scots have an unfavourable opinion of Mr Trump, while 18% have a positive opinion, an Ipsos poll in March found.
Mr Trump is staying at his Turnberry property on Scotland’s west coast this weekend, before travelling to Aberdeenshire on Monday, where he will open a second 18-hole course.
He is due to return to the UK in September for a state visit hosted by the King – the first world leader in modern times to undertake two UK state visits.
UK
‘Immigration is killing Europe’: Donald Trump issues warning to leaders as he arrives in Scotland
Donald Trump has landed in Scotland ahead of a four-day trip, which includes high-level meetings, praising Sir Keir Starmer as “a good man” but also calling illegal migration a “horrible invasion” that was “killing Europe”.
Crowds gathered at Prestwick Airport in Ayrshire amid a major security operation for the US president’s visit.
Mr Trump told reporters: “I like your prime minister. He’s slightly more liberal than I am… but he’s a good man… he got a trade deal done. It’s a good deal for the UK.”
Trump latest: Donald Trump arrives in Scotland
The pair are expected to discuss potential changes to the UK-US trade deal which came into force last month.
Trump left Air Force One to head to Turnberry, one of his Scottish golf courses. Part of the trip will include the opening of another course in Aberdeenshire, billed as “the greatest 36 holes in golf”.
Trump supporters waved as Air Force One landed. Pic: PA
“There’s no place like Turnberry. It’s the best, probably the best course in the world. And I would say Aberdeen is right up there,” the US president said.
“Sean Connery helped get me the [planning] permits. If it weren’t for Sean Connery, we wouldn’t have those great courses,” he added.
During the trip, President Trump will also hold discussions with Scotland’s First Minister John Swinney and EU Commission President Ursula von der Leyen, who is keen to secure a trade deal with the US.
Donald Trump spoke to reporters after landing at Prestwick Airport, Ayrshire. Pic: AP
Mr Trump told reporters there was “a good 50-50 chance” of an agreement with the EU but added there were “maybe 20 different” sticking points.
EU diplomats say a deal could result in a broad 15% tariff on EU goods and half of the 30% Trump is threatening to impose by 1 August.
He travelled to Turnberry, one of his Scottish golf resorts, amid tight security. Pic: Reuters
The US president touched on illegal immigration and gave European leaders a stark warning.
“You better get your act together or you’re not going to have Europe anymore. You got to get your act together,” he said.
“But you’re allowing it to happen to your countries and you got to stop this horrible invasion that’s happening to Europe. Immigration is killing Europe,” he told reporters.
Please use Chrome browser for a more accessible video player
What do Scots think of Trump visit?
He was also scathing about the installation of wind turbines across Europe.
“Stop the windmills. You’re ruining your countries,” he said. “It’s so sad. You fly over and you see these windmills all over the place, ruining your beautiful fields and valleys and killing your birds.”
Read more from Sky News:
Epstein risks following Trump
Ghislaine Maxwell questioned
Epstein questions keep coming
Domestically, President Trump faces the biggest political crisis of his second term in office over his administration’s handling of files linked to disgraced financier and sex offender Jeffrey Epstein, who died in prison in 2019.
He faced another round of questions after stepping off Air Force One. “You’re making a big thing over something that’s not a big thing. I’m focused on making deals, not on conspiracy theories that you are,” he said.
Mr Trump added that “now’s not the time” to discuss a pardon for Ghislaine Maxwell, Epstein’s imprisoned accomplice.
Please use Chrome browser for a more accessible video player
Trump in Scotland amid Epstein storm
👉 Follow Trump100 on your podcast app 👈
While the president’s visit did attract some enthusiastic flag-waving supporters at Prestwick Airport, he is also likely to trigger a number of protests, prompting Police Scotland to call in support from other forces in the UK.
The Stop Trump Scotland group has planned demonstrations on Saturday in Edinburgh, Aberdeen and Dumfries.
About 70% of Scots have an unfavourable opinion of Trump, while 18% have a positive opinion, an Ipsos poll in March found.
President Trump is staying at his Turnberry property on Scotland’s west coast this weekend, before travelling to Aberdeenshire on Monday, where he will open a second 18-hole course.
He is due to return to the UK in September for a state visit hosted by the King – the first world leader in modern times to undertake two UK state visits.
A woman who thought she was being injected with Botox was left unable to swallow and doctors thought she had suffered a stroke – after she contracted a life-threatening illness from a potentially illegal product.
Nicola Fairley is one of dozens of people who have developed botulism linked to unlicenced anti-wrinkle injections.
She had the procedure done with her regular beautician after winning a Facebook competition for three areas of “Botox”.
Nicola Fairley
“Within two or three hours my forehead and the sides of my eyes had started to freeze,” Nicola says.
“At first I thought ‘amazing’, that’s what I wanted – then it just carried on.”
Nicola was eventually sent to A&E in Durham, where she met several other patients who all had similar symptoms.
Doctors were stumped. “They thought I’d had a stroke,” she says.
“We all had problems with our eyes, some of us with our breathing. I couldn’t swallow – they put me on nil by mouth because they were worried I would choke in the waiting room.”
Doctors were worried Nicola could choke after she was injected with a suspected illegal product
It turns out all of the patients had recently had anti-wrinkle injections containing botulinum toxin.
Health officials believe they were imported, illegal products.
Botulism – the disease they caused – is so rare many doctors never see it in their entire careers.
It can cause symptoms including slurred speech and breathing problems, and can be deadly.
The disease is so unusual, and so many cases were coming in, that doctors exhausted their stocks of anti-toxin and had to ask hospitals as far away as London to get more.
The UK Health Security Agency has so far confirmed 38 cases of botulism linked to cosmetic toxin injections, but Sky News has been told of several more.
The outbreak began in the North East but cases have now been seen in the East of England and East Midlands as well.
There are only a handful of legal botulinum toxin products in the UK – of which Botox is one.
But cosmetic treatments are largely unregulated, with anyone allowed to inject products like fillers and toxins without any medical training.
Cheap, illegal products imported from overseas are easily available.
Dr Steven Land
‘It’s the Wild West’
Dr Steven Land runs Novellus Aesthetics clinic in Newcastle upon Tyne. He worked for decades as an emergency medicine doctor before moving into aesthetics.
He says he has been warning health officials of an outbreak for years.
“It’s the Wild West,” Dr Land told Sky News.
“Because anyone can do this, there is a lack of knowledge around what is legal, what’s not legal, what is okay to be injected.
“These illegal toxins could have 50 units, 5,000 units or rat poison – there could be anything in there.”
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Dr Land showed us messages that he says he gets on a weekly basis, from sellers trying to push him cheap, unlicenced products.
They advertise “limited time offers” and cheap bundles on toxins imported from overseas. He calls them “drug dealers”.
“They are preying on the lack of knowledge among non-medical practitioners,” he says.
Consultations on how to regulate the aesthetics industry have been ongoing for years – but so far, no changes have been introduced.
The UK government now says it does plan to regulate certain procedures, but it’s not said how it will do this, or when.
“What will it take?” Nicola says. “One of the women we were with did almost die – she had to be resuscitated.”
Nicola’s beautician has stopped responding to her messages, so she says she still has no idea what the product was “or how much of it is in me”.
She doesn’t know how long her symptoms will last, but just hopes she will eventually recover.
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