Therese Coffey says Britons should ‘be assured’ by UK’s finances – as Bank of England makes second intervention in two days
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”.
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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.
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.”
Meanwhile, a leading think tank has warned that Chancellor Kwasi Kwarteng will have to find spending cuts of more than £60 billion if he is to meet his target to get the public finances back under control.
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.”
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Is the UK facing a financial crisis?
On Monday, the chancellor announced that his debt-cutting plan will be published on 31 October – three weeks earlier than planned – alongside an independent economic forecast.
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.
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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”.
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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.
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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”.
Meanwhile, Parliament returns today after party conference recess and Labour is calling on Mr Kwarteng to come before the Commons and turn his back on his tax-cutting mini-budget.
The chancellor is likely to be pressed on his fiscal plans at Treasury questions this afternoon.
Brazil’s former president Jair Bolsonaro has been sentenced to 27 years and three months in prison for attempting a coup to stay in power after his 2022 election defeat.
The far-right politician, who ruled Brazil between 2019 and 2022, is currently under house arrest in the capital, Brasilia.
A panel of five Supreme Court justices handed down the sentence several hours after they found the 70-year-old guilty on five counts.
The counts were trying to stage a coup, being part of an armed criminal organisation, attempting violent abolition of the democratic rule of law, being implicated in violence, and posing a serious threat to the state’s assets and listed heritage.
Bolsonaro‘s lawyers have said they will appeal the verdict.
Pic: AP
The ruling will deepen political divisions in Brazil and is also likely to prompt a backlash from the United States government – with Donald Trump already sharing his thoughts on the vote.
President Trump, an ally of Bolsonaro, has said he was surprised and “very unhappy” with the decision.
Speaking to reporters outside the White House, he said he always found Bolsonaro “outstanding” and said the conviction is “very bad for Brazil”.
Mr Trump previously called the case a “witch hunt”, slapped Brazil with tariff hikes, and revoked US visas for most members of Brazil’s high court.
Bolsonaro is the first former Brazilian president to be convicted of attempting a coup.
He has not attended the court proceedings, and on Thursday, he was seen at the garage of his property, but did not talk to the media.
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Justice Carmen Lucia. Pic: AP
Justice Alexandre de Moraes, who has been overseeing the case, said on Tuesday that Bolsonaro was the leader of a coup plot and of a criminal organisation, and voted in favour of convicting him. Justices Flavio Dino, Carmen Lucia, and Cristiano Zanin sided with Justice Moraes in the trial.
On Wednesday, another justice, Luiz Fux, disagreed and voted to acquit the ex-president of all charges.
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Justice Lucia said she was convinced by the evidence the attorney general’s office put forward against Bolsonaro, saying: “He is the instigator, the leader of an organisation that orchestrated every possible move to maintain or seize power.”
Bolsonaro had been previously banned from running for office until 2030 in a different case.
He is expected to choose an heir who is likely to challenge President Luiz Inacio Lula da Silva next year.
The FBI and officials have released new video and images of a “person of interest” in connection with the shooting of conservative activist Charlie Kirk, as the manhunt continues.
At a news conference on Friday, Utah Governor Spencer Cox showed video footage showing the suspect walking on the roof of the building from where the fatal shot was fired. He is then seen climbing down and heading toward a wooded area, where police say he abandoned his rifle.
Additional images released by police show the suspect wearing a hat, sunglasses, and a backpack.
Investigators have conducted nearly 200 interviews related to the case as 20 law enforcement partners are working on the investigation, Governor Cox said.
Prosecutors will seek the death penalty against the attacker, he said.
Follow the latest updates on Charlie Kirk’s killing
Authorities have released additional images of the attacker. Pic: Utah Public Safety
Earlier, authorities said the shooter was thought to have jumped off a roof and fled into a neighbourhood after firing one shot.
They also said the suspect was a male who “appears to be of college age” and blended in on the Utah Valley University campus in Orem, where Mr Kirk was killed.
Mr Kirk, a 31-year-old right-wing influencer, was fatally shot in the neck on Wednesday afternoon while speaking to university students at an event. He died in hospital after being shot.
Charlie Kirk hands out hats before speaking at Utah Valley University where he was later fatally shot. Pic: AP
The rifle suspected of being used in the shooting has been found.
In a briefing on Thursday, FBI agent Robert Bohls said: “I can tell you that we have recovered what we believe is the weapon that was used in yesterday’s shooting… is a high-powered bolt action rifle.
“That rifle was recovered in a wooded area where the shooter had fled. The FBI laboratory will be analysing this weapon.”
Investigators have collected a footwear impression, a palm print, and forearm imprints for analysis.
Authorities have released additional images of the attacker. Pic: Utah Public Safety
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The father-of-two was the chief executive and co-founder of Turning Point USA, a prominent organisation that engages conservative youth on school campuses.
He had millions of followers across social media.
Mr Kirk and Turning Point USA played a key role in driving youth support for Mr Trump in last November’s presidential election. His events at college campuses nationwide typically drew large crowds.
Many people listened both in person and online to Mr Kirk, as he advocated for conservatism among younger generations and became a leading voice in the Make America Great Again (MAGA) movement.
President Donald Trump paid tribute to Mr Kirk while on stage at a 9/11 memorial event in Virginia, saying he would be awarding him the Presidential Medal of Freedom.
Authorities have released additional images of the attacker. Pic: Utah Public Safety
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“Before we begin, let me express the horror and grief so many Americans at the heinous assassination of Charlie Kirk have felt,” Mr Trump said.
“Charlie was a giant of his generation, a champion of liberty and an inspiration to millions and millions of people. Our prayers are with his wonderful wife, Erika, and his beautiful children.”
He later added the FBI was making “big progress” in finding the shooter and he has “an indication” of the motive, but declined to expand.
“He’s an animal, total animal, hopefully they’ll have him and they’ll get him.”
Donald Trump had a heated phone call with Israeli Prime Minister Benjamin Netanyahu after his military targeted Hamas inside Qatar, according to a report.
The American president told Mr Netanyahu on Tuesday that the decision to strike inside the US ally’s territory was not wise, The Wall Street Journal reported, citing senior administration officials.
The Israeli prime minister responded by saying he had a brief window to launch the airstrike and took the opportunity, according to the newspaper.
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Anger over Israeli strikes on Qatar
A second call between the two leaders later that day was cordial, with Mr Trump asking Mr Netanyahu if the attack had been successful, the publication added.
Israel attempted to kill the political leaders of the Islamist group Hamas with the attack in the Qatari capital Doha on Tuesday.
Hamas has said its top leaders survived the airstrike, but five members were killed, including the son of its exiled Gaza chief and top negotiator Khalil al Hayya.
The Israeli military operation in Doha has been widely condemned internationally and was particularly sensitive as Qatar has been hosting and mediating in negotiations which are trying to bring about a ceasefire in the war in Gaza.
On Wednesday, Mr Netanyahu warned Qatar to either expel Hamas officials or “bring them to justice. Because if you don’t, we will”.
Qatar has hit back at him, saying his comments about the Gulf nation hosting a Hamas office were “reckless”.
Donald Trump with Benjamin Netanyahu at the White House earlier this year. Pic: Reuters
Meanwhile, the Israeli ambassador to the US, Yechiel Leiter, has said that if Israel failed to kill Hamas leaders on Tuesday, it would succeed next time.
“We have put terrorists on notice, wherever they may be… we’re going to pursue them, and we’re going to destroy those who will destroy us,” he said.
The airstrike took place shortly after Hamas claimed responsibility for Monday’s shooting at a bus stop on the outskirts of Jerusalem that killed six people.
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In another development, Sir Keir Starmer has had talks with Israeli President Isaac Herzog in Downing Street, with Mr Herzog saying they argued during a “tough meeting”.
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PM meets Israeli president
PM condemns Israeli action
The prime minister has condemned the Israeli attack in Qatar, and raised the matter with the president, saying it was “completely unacceptable”.
“He said the strikes were a flagrant violation of a key partner’s sovereignty and do nothing to secure the peace we all desperately want to see,” a Downing Street spokesperson said.
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Israel has been angered by Britain’s plans to join several other Western countries, including France and Canada, in recognising a Palestinian state later this month – unless Israel meets conditions including a ceasefire in Gaza.
“Things were said that were tough and strong, and clearly we can argue, because when allies meet, they can argue. We are both democracies,” Mr Herzog said at an event at Chatham House.
He also proposed offering a “fact-finding mission” to Israel, “sitting with us and studying the situation in Gaza on the humanitarian level”.
“Because we have full answers, and we are fully transparent,” he said.
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