Therese Coffey has said Britons should “be assured” by the UK’s finances – as the Bank of England made its second intervention in the markets in two days.
The deputy prime minister and health secretary told Sky News the UK has “the second lowest debt to GDP ratio in the G7” and that the actions the government has taken in an attempt to stabilise the economy amid the energy crisis have already led to “an impact in the reduction of inflation forecasts”.
But as she spoke to Kay Burley, the Bank of England announced it would increase the amount of bonds it can buy in the final week of a scheme it launched in response to turbulence in the gilt market.
The Bank warned an ongoing rout in the gilts market poses a “material risk to UK financial stability”.
It is the second day in a row that the Bank has taken fresh action following a rise in UK government borrowing costs yesterday.
This morning, in line with its financial stability objective, the Bank announced it will widen its gilt purchase operations to include index-linked gilts.
More on Bank Of England
Related Topics:
Ms Coffey was not aware of the Bank of England’s fresh action but told Sky News that the country is in “a good state” and that MPs will be able to discuss the economy in more detail “in the days and weeks ahead”.
Shadow chief secretary to the treasury, Pat McFadden, said: “That the Bank of England has been forced to step in for a second day running to reassure markets shows the government’s approach is not working, and creates renewed pressure for the chancellor to reverse his budget.”
The Institute for Fiscal Studies (IFS) said it was not possible to deliver cuts on that scale through efficiency savings and “trimming the fat” and that it would require major cuts to public services.
It added that failure to come up with a credible plan that convinces the markets the government is committed to reducing debt could result in a worse crisis than 1976, when the Labour government was forced to seek a bailout from the International Monetary Fund (IMF).
Asked whether there would be enough fat to trim in governmental departments if needed, Ms Coffey said: “Well, I’m just not going to get into hypothetical.”
Please use Chrome browser for a more accessible video player
Both the publication of the medium-term financial plan and the forecast by the Office for Budget Responsibility (OBR) had been due on 23 November, but Mr Kwarteng has bowed to pressure to bring this date forward to Halloween.
Financial markets responded badly to the chancellor’s mini-budget last month, with the pound falling to a record low.
Mr Kwarteng has been facing growing calls to produce his fiscal statement which will outline how the government intends to pay for the £43bn worth of tax cuts in the mini-budget and how it plans to reduce debt.
Yesterday, the prime minister’s official spokesperson said the chancellor wants to set out his commitment to debt falling over the medium term “as soon as possible” and the new date “is the right time to do that”.
There will be more details about the government’s debt reduction plan announced ahead of then for the fiscal event, the spokesman added.
Please use Chrome browser for a more accessible video player
42:05
Will the lights go out on Britain?
Ms Coffey denied that the chancellor brought his medium-term fiscal plan forward because the markets were spooked.
She said Mr Kwarteng’s decision to bring forward the date shows that he “wanted to get on and show our plans and make sure people have confidence that they can get on and start delivering them”.
Elsewhere this morning, official figures have shown that the UK’s unemployment rate dropped to its lowest for almost half a decade as more Britons left the labour market completely.
The Office for National Statistics (ONS) said the unemployment rate fell to 3.5% over the three months to August – the lowest since February 1974.
The ONS also said real wages had fallen by 4% for the period June to August, compared to the year before.
Responding to the data, the Trades Union Congress urged the government to “stabilise the economy and get pay rising”.
TUC general secretary Frances O’Grady said “pay packets continue to be eaten up by inflation” and that the government should be “lifting the minimum wage to £15 an hour as soon as possible” and “funding decent pay rises for all public sector workers”.
Footage has emerged of the moment 15 aid workers were killed in Gaza last month – showing their ambulances and fire insignia were clearly visible when Israeli troops are believed to have opened fire on them.
The bodies of 15 aid workers – eight medics working for the Palestine Red Crescent Society (PRCS), six civil defence members, and one United Nations employee – were found in a “mass grave” after the incident, according to the head of the UN Office for Coordination of Humanitarian Affairs Jonathan Whittall.
The Israeli military said it is investigating – claiming before the video came to light that its initial inquiry found its troops opened fire on vehicles without headlights or emergency signals, which therefore looked “suspicious”. It also says there was an evacuation order in place in the area at the time of the incident.
But video footage obtained by the PRCS – and verified by Sky News – shows ambulances and a fire vehicle clearly marked with flashing red lights.
Image: Vehicles are seen with red flashing lights in the footage
Sky News has used aftermath video and satellite imagery to verify the location and timing of the footage.
It was filmed on 23 March north of Rafah. It shows a convoy of marked ambulances and a fire-fighting vehicle travelling south along a road towards central Rafah. All of the vehicles visible in the convoy have their flashing lights on.
It was filmed early in the morning, with a satellite image seen by Sky News taken at 9.48am local time on the same day showing a group of vehicles bunched together off the road.
The PRCS first posted about losing contact with its crews just before 7am local time.
Satellite imagery shows the area on 26 March, three days later. Tyre tracks are visible, as are groundworks likely created by military vehicles.
Image: Pic: Planet Labs PBC
The footage is first filmed from inside a moving vehicle, through the windscreen a convoy of vehicles is visible – including ambulances and a fire truck with flashing emergency signal lights.
When the convoy stops, a vehicle is seen having veered off the road to the left-hand side.
The vehicle where the video is being filmed from stops and the aid workers get out. Intense gunfire then breaks out and continues for around five minutes.
The paramedic filming the video is heard saying in Arabic that there are Israelis present – and reciting a declaration of faith used before someone dies.
Hebrew voices are also heard in the background but it is not clear what they are saying.
Image: The footage was filmed from a moving vehicle
Israel conducting ‘thorough examination’
In a fresh statement on Saturday, the Israel Defence Forces (IDF) said the incident is “under thorough examination”.
“All claims, including the documentation circulating about the incident, will be thoroughly and deeply examined to understand the sequence of events and the handling of the situation,” it added.
In its statement on Saturday, the PCRS said the clip was “found on the phone of martyred EMT Rif’at Radwan, after his body was recovered” and that it “clearly shows that the ambulances and fire trucks they were using were visibly marked, with flashing emergency lights on at the time they were attacked”.
“This video unequivocally refutes the occupation’s claims that Israeli forces did not randomly target ambulances, and that some vehicles had approached ‘suspiciously without lights or emergency markings’,” it added.
X
This content is provided by X, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable X cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to X cookies.
To view this content you can use the button below to allow X cookies for this session only.
Speaking at the United Nations on Friday, PRCS president Dr Younis Al Khatib said the organisation has “asked for an independent investigation”.
He added: “Something I can release, I heard the voice of one of those kids. I heard the voice of one of those team members who was killed and his phone was found with his body and he recorded the whole event.
“His last words before being shot, ‘Forgive me, mom. I just wanted to help people. I wanted to save lives’.”
Image: Pic: Palestine Red Crescent Society (PRCS)
Dylan Winder, permanent observer of the International Federation of the Red Cross (IFRC) said it is “outraged at the deaths of eight medics from the Palestinian Red Crescent Society killed on duty in Gaza“.
“They were humanitarians. They wore emblems that should have been protected. Their ambulances were clearly marked, and they should have returned to their families. They did not,” he said.
“Even in the most complex conflict zones, there are rules. These rules of international humanitarian law could not be clearer: civilians must be protected, humanitarians must be protected, health services must be protected.”
In a statement issued before the footage of the incident emerged, the IDF said it condemned “the repeated use of civilian infrastructure by the terrorist organisations in the Gaza Strip, including the use of medical facilities and ambulances for terrorist purposes”.
It claimed that several members of the militant groups Hamas and Palestinian Islamic Jihad were killed in the incident.
It did not comment directly on the deaths of the Red Crescent workers but later told the Reuters news agency it had allowed the bodies to be recovered from the area, which it described as an active combat zone.
Image: Fifteen people died in the incident on 23 March
Bodies found in ‘mass grave’
The bodies of the missing aid workers were found in sand in the south of the Gaza Strip in what Mr Whittall, called a “mass grave”, marked with the emergency light from a crushed ambulance.
He posted pictures and video of Red Crescent teams digging in the sand for the bodies and workers laying them out on the ground, covered in plastic sheets.
Please use Chrome browser for a more accessible video player
1:22
Bodies of aid workers found in Gaza
Philippe Lazzarini, head of the UN agency for Palestinian Refugees (UNRWA), said that the bodies had been “discarded in shallow graves” in what he called “a profound violation of human dignity”.
According to the UN, at least 1,060 healthcare workers have been killed in the 18 months since Israel launched its offensive in Gaza after Hamas fighters stormed southern Israel on 7 October 2023.
The UN is reducing its international staff in Gaza by a third because of safety concerns.
Palestinian health authorities say more than 50,000 people have been killed since Israel launched its campaign in Gaza in response to the 7 October assault, when Hamas militants crossed the border into southern Israel, killing more than 1,200 people, and taking some 250 hostage.
Gaza’s health ministry records do not distinguish between civilians and combatants.
Gaza’s health ministry has removed 1,852 people from its official list of war fatalities since October, after finding that some had died of natural causes or were alive but had been imprisoned.
The list of deaths currently stands at 50,609 following the removals. Gaza’s health ministry records do not distinguish between civilians and combatants.
Almost all of the names removed (97%) had initially been submitted through an online form which allows families to record the deaths of loved ones where the body is missing.
The head of the statistics team at Gaza’s health ministry, Zaher Al Wahidi, told Sky News that names submitted via the form had been removed as a precautionary measure pending a judicial investigation into each one.
“We realised that a lot of people [submitted via the form] died a natural death,” Mr Wahidi said. “Maybe they were near an explosion and they had a heart attack, or [living in destroyed] houses caused them pneumonia or hypothermia. All these cases we don’t [attribute to] the war.”
Others submitted via the form were found to be imprisoned or to be missing with insufficient evidence that they had died.
Some families submitting false claims, Mr Wahidi said, may have been motivated by the promise of government financial assistance.
It is the largest removal of names from the list since the war began, and comes after 1,441 names were removed between August and October – 54% of them originating in hospital morgue records rather than the online form.
Mr Wahidi says his team audited the hospital data after receiving complaints from people who had ended up on the list despite being alive.
They found that hospital clerks, when operating without access to the central population registry and lacking full names or dates of birth for the dead, had marked the wrong people as dead in their records.
In total, 8% of people who were listed as dead in August have since been removed from the official death toll. Many of those may later be added back in, as the judicial investigations proceed.
‘It doesn’t look like manipulation’
Gabriel Epstein, a research assistant at US thinktank The Washington Institute for Near East Policy, said there’s no reason to think the errors are the result of deliberate manipulation intended to inflate the share of women and children among the dead.
“If 90% of the removed entries were men aged 18-40, that would look like manipulation,” he said. “But it doesn’t look like that.”
Of those entries removed since the start of the war and whose demographic information was recorded, 41% are men aged 18 to 60, while 59% are women, children and elderly people.
By comparison, 44% of remaining deaths are working-age men. This means that the removals have had the effect of slightly reducing the share of women and children in the official list.
Names were previously added to the list without verification
Until October, Mr Wahidi said, names submitted via the online form had been added to the official list of registered deaths before undergoing a judicial confirmation process.
The publication of unverified deaths submitted via the form had previously led to issues with the data, with 1,295 deaths submitted via the form being removed from the list prior to October. This included 474 people who were later added back again.
Sky News previously understood that names from the form were only published after undergoing judicial confirmation. However, Mr Wahidi says this practice only began in October.
“This does cause me to downgrade the quality of the earlier lists, definitely below where I thought they were,” said Professor Michael Spagat, chair of Every Casualty Counts, an independent civilian casualty monitoring organisation.
A Ministry of Health document from July 2024 confirms that names submitted through the online form were, at the time, included in the official fatality list before being verified.
These names “are initially included in the final count of martyrs, but verification procedures are undertaken afterward”, the document says.
“They basically said that they were posting these things provisionally pending investigation,” said Prof Spagat.
“There may have been literally zero people, including us, who actually absorbed this message, but they weren’t hiding it either.”
More than 1,200 Israelis have been killed in the 7 October attack and ensuing war.
The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.
Global financial markets gave a clear vote of no-confidence in President Trump’s economic policy.
The damage it will do is obvious: costs for companies will rise, hitting their earnings.
The consequences will ripple throughout the global economy, with economists now raising their expectations for a recession, not only in the US, but across the world.