A senior Tory has accused the government of looking “like libertarian jihadists” and treating the country as “laboratory mice” over the past few weeks.
Robert Halfon, former deputy chairman of the Conservative Party and an education minister under Theresa May, said he believes Liz Truss needs to apologise to the public for the economic turmoil caused by the mini-budget three weeks ago.
He told Sky News’ Sophy Ridge on Sunday programme: “I worry that over the past few weeks the government has looked like libertarian jihadists and treated the whole country as laboratory mice on which to carry out an ultra-free market experiment.
He added that the public is “frightened” about what is happening to the economy and said the prime minister needs to set out a “real vision” for the future of Britain.
Mr Halfon, who now chairs the education select committee, said he “welcomed” some of the comments made by Jeremy Hunt on his first day as the new chancellor after Kwasi Kwarteng was sacked on Friday.
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Ahead of Mr Kwarteng’s sacking, Mr Halfon accused Ms Truss of trashing “the last 10 years” of Conservative government during a meeting of backbench Tory MPs she was addressing.
He told the prime minister the mini-budget disproportionately benefited the wealthy and meant she had abandoned “workers’ conservatism”, The Times reported.
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Sir Charles Bean, former deputy at the Bank of England, rubbished the government’s claim the recent market turmoil was due to a “global phenomenon”.
He told Sophy Ridge on Sunday it was “disingenuous” to say it is entirely due to global events and said the UK economy was similar to Germany, but now looks “more like Italy and Greece”.
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9:13
Former BoE dept on UK economy
Is defence spending pledge off the books?
Andrew Griffith, financial secretary to the Treasury, hinted Ms Truss may abandon her campaign pledges, including a promise to lift defence spending from 2% to 3% by the end of the decade.
Asked specifically about committing to an increase in defence spending, he told Sophy Ridge: “There are no commitments, I’m afraid, that I can make at 9am on a Sunday morning because we’re going into a process.
“I think in fairness, you’d be the first to say ‘why would you be making decisions without taking those into full consideration and without, of course, involving the OBR’, which is something that I think all of us have said that with hindsight would have been nicer to do.”
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Treasury minister on defence spending
Leading defence think tank, the Royal United Services Institute, calculated increasing defence spending to 3% of national income by 2030 would mean more than 40,000 extra military personnel and an extra £157 billion in spending.
Asked whether any backtracking on defence spending goals would be a resigning issue, a defence source said Mr Wallace would hold the prime minister to the pledges made.
That commitment appears to be in the balance after Mr Hunt this weekend repeatedly said he will ask all government departments to find “efficiency savings”.
Image: Pic: Andrew Parsons / No 10 Downing Street
‘Not taking anything off the table’
In his latest comments, Mr Hunt told the BBC’s Sunday with Laura Kuenssberg programme: “I’m going to be asking every government department to find further efficiency savings.
“I’m not taking anything off the table, I want to keep as many of those tax cuts as I possibly can, because our long-term health depends on being a low-tax economy. And I strongly believe that.”
Mr Hunt added that he does not think the future will be “anything like” the former period of austerity under David Cameron and George Osborne.
Labour’s Jonathan Reynolds, the shadow business secretary, said the last three weeks of Conservative Party action has been a “disgrace” and an “embarrassment”.
“I think every time Conservative ministers come on and pretend somehow that this isn’t their responsibility, confidence falls further,” he told Sky News.
“Who is in charge of this government? What are this government’s policies? I don’t know the answer to those questions.”
Ukraine’s president is offering an olive branch to Donald Trump with a dramatic public message aimed at mending their relationship and ending Russia’s war.
He did not go so far as to apologise for a fiery bust-up with Mr Trump at the Oval Office last Friday – a move that some members of the US administration have called for, even though it was the American president and his deputy JD Vance who laid into Mr Zelenskyy.
Image: Ukrainian forces fire a missile towards Russian troops near Chasiv Yar. Pic: Reuters
Most significantly though was his spelling out of a vision for the first stage of how Russia’s war with Ukraine could end.
Pushing back on false claims by Trump allies such as Elon Musk that Mr Zelenskyy wants an endless war, he said that Ukraine is committed to peace and is ready to come to the negotiating table as soon as possible.
Crucially, he said: “We are ready to work fast to end the war, and the first stages could be the release of prisoners and truce in the sky – ban on missiles, long-ranged drones, bombs on energy and other civilian infrastructure – and truce in the sea immediately, if Russia will do the same.”
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Appealing to the US president’s ego, he praised Mr Trump’s “strong leadership” and repeated his gratitude for past American support – again responding to criticism from the American commander in chief and his team that he is not showing enough gratitude.
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He also said Kyiv was ready to sign a key minerals deal with Washington – something else Mr Trump is seeking.
This message appears to be an attempt by Mr Zelenskyy to steer his relationship with Mr Trump back on track and to map out his idea for an end to the war – a conflict that Ukraine did not seek but which was brought to its land by Russia’s invading forces.
Image: Donald Trump and Volodymyr Zelenskyy at the White House on Friday, before their Oval Office bust-up. Pic: AP
Will Mr Zelenskyy’s expression of regret and clear wish to end the war provide enough of an off-ramp for Mr Trump to defuse the row and – for the sake of Ukraine’s ability to defend itself – switch back on the flow of military assistance to the country?
Another major factor, of course, is how Vladimir Putin reacts and whether he could countenance a limited ceasefire in a war that he started and – unlike Mr Zelenskyy – appears to have no genuine desire to halt.
Donald Trump’s 25% tariffs on goods from Mexico and Canada have come into effect, as has an additional 10% on Chinese products, bringing the total import tax to 20%.
The US president confirmed the tariffs in a speech at the White House – and his announcement sent US and European stocks down sharply.
The tariffs will be felt heavily by US companies which have factories in Canada and Mexico, such as carmakers.
Mr Trump said: “They’re going to have a tariff. So what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs.”
There’s “no room left” for a deal that would see the tariffs shelved if fentanyl flowing into the US is curbed by its neighbours, he added.
Mexico and Canada face tariffs of 25%, with 10% for Canadian energy, the Trump administration confirmed.
And tariffs on Chinese imports have doubled, raising them from 10% to 20%.
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Canada announced it would retaliate immediately, imposing 25% tariffs on US imports worth C$30bn (£16.3bn). It added the tariffs would be extended in 21 days to cover more US goods entering the country if the US did not lift its sanctions against Canada.
China also vowed to retaliate and reiterated its stance that the Trump administration was trying to “shift the blame” and “bully” Beijing over fentanyl flows.
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What is America’s trade position?
Mr Trump’s speech stoked fears of a trade war in North America, prompting a financial market sell-off.
Stock market indexes the Dow Jones Industrial Average and the Nasdaq Composite fell by 1.48% and 2.64% respectively on Monday.
The share prices for automobile companies including General Motors, which has significant truck production in Mexico, Automaker and Ford also fell.
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Consumers in the US could see price hikes within days, an expert has said.
Gustavo Flores-Macias, a public policy professor at Cornell University, New York, said “the automobile sector, in particular, is likely to see considerable negative consequences”.
This is due to supply chains that “crisscross the three countries in the manufacturing process” and ” because of the expected increase in the price of vehicles, which can dampen demand,” he added.
A truck has collided with a bus in southern Bolivia, killing at least 31 people, according to police – just two days after a deadly crash claimed at least 37 lives.
Officers said the bus rolled some 500m (1,640ft) down a ravine after the collision on Monday, which took place on the highway between Oruro, in the Bolivian Altiplano, and the highland mining city of Potosi.
The driver of the truck has been arrested, while the cause of the accident is under investigation.
Police spokesperson Limbert Choque said men and women were among the dead, and 22 people suffered injuries.
Image: Rescue teams operating at the site of the crash. Pic: Bolivia’s attorney general/Reuters
Bolivia’s President, Luis Arce, expressed condolences for the victims on social media: “This unfortunate event must be investigated to establish responsibilities,” he said in a post on Facebook.
“We send our most sincere condolences to the bereaved families, wishing them the necessary strength to face these difficult times.”
Image: The crash happened between Oruro and Potosi
On Saturday morning, a crash between two buses killed more than three dozen people in the same region.
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It happened between Colchani and the city of Uyuni, a major tourist attraction and the world’s largest salt flat.
Image: People stand near the wreckage of one of the two buses involved in a crash on Saturday. Pic: Reuters/Potosi Departmental Command
Coincidentally, one of the buses was heading to Oruro, where one of the most important carnival celebrations in Latin America is currently taking place.
More than 30 people were also killed after a bus crash on 17 February.
In that crash, police said the driver appeared to have lost control of the vehicle, causing it to drop more than 800m (2,600ft) off a precipice in the southwestern area of Yocalla.
Bolivia’s mountainous, undermaintained and poorly supervised roads are some of the deadliest in the world, claiming an average 1,400 fatalities every year.