Keir Starmer calls for recall of parliament over economic crisis
Sir Keir Starmer has called for a recall of parliament to discuss the financial market turmoil following Friday’s mini-budget.
Speaking to reporters, the Labour leader said the move by the Bank of England to launch a temporary bond-buying programme to prevent “material risk” to UK financial stability was “very serious”.
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Sir Keir said: “I think many people will now be extremely worried about their mortgage, about prices going up, and now about their pensions.
“The government has clearly lost control of the economy.
“What the government needs to do now is recall parliament and abandon this budget before any more damage is done.”
Parliament is in recess because of the Labour and Tory party conferences, and the decision for a recall lies with Prime Minister Liz Truss.
PM under pressure after Bank’s extraordinary move
The PM been facing international pressure to change course after Friday’s budget sent the pound crashing to record lows against the dollar and triggered mortgage lenders to withdraw their offers.
Then, in an extraordinary move today, the Bank of England took emergency action to prop up the economy.
It revealed that it would buy as many long-dated government bonds as needed between now and 14 October in a bid to stabilise financial markets.
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In addition to the plunge in the value of the pound, it has also seen investors demand a greater rate of return for UK government bonds – essentially IOUs.
That is because the level of borrowing required to fund the government giveaway, including tax cuts and energy aid for households and businesses, shocked the market, which immediately questioned the sustainability of public finances.
The Lib Dems and SNP have also demanded a recall of parliament, while a growing number of Tory MPs have been criticising the government’s economic plans.
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Prime Minister Liz Truss and Chancellor Kwasi Kwarteng are facing pressure to change course
‘Inept madness can’t go on’
Simon Hoare, Tory MP for North Dorset and chair of the Northern Ireland Select Committee, said: “In the words of Norman Lamont on Black Wednesday: ‘Today has been a very difficult day’.
“These are not circumstances beyond the control of Govt/Treasury. They were authored there. This inept madness cannot go on.”
Meanwhile, a former minister told Sky News that there is a “growing movement” for Chancellor Kwasi Kwarteng to step down.
“The mainstream majority think we have crossed the Rubicon,” they said.
But another former minister tried to pour water on the flames.
They said: “It is inevitable the markets would react to a changing direction in economic policy. They will settle.”
Mr Kwarteng held a meeting with investment bankers this morning to try to reassure them.
He said he was committed to “fiscal discipline”, and that he was working closely with the Bank’s governor and the Office for Budget Responsibility.
Donald Trump has agreed to send “top of the line weapons” to NATO to support Ukraine – and threatened Russia with “severe” tariffs if it doesn’t agree to end the war.
Speaking with NATO secretary-general Mark Rutte during a meeting at the White House, the US president said: “We’ve made a deal today where we are going to be sending them weapons, and they’re going to be paying for them.
“This is billions of dollars worth of military equipment which is going to be purchased from the United States, going to NATO, and that’s going to be quickly distributed to the battlefield.”
Pic: Reuters
It comes as Ukrainian president Volodymyr Zelenskyy said he had a “very good conversation” with Mr Trump late on Monday. He thanked him for the “willingness to support Ukraine and to continue working together to stop the killings”.
Weapons being sent from to Ukraine include surface-to-air Patriot missile systems and batteries, which the country has asked for to defend itself from Russian air strikes.
Mr Trump also said he was “very unhappy” with Russia, and threatened “severe tariffs” of “about 100%” if there isn’t a deal to end the war in Ukraine within 50 days.
The White House added that the US would put “secondary sanctions” on countries that buy oil from Russia if an agreement was not reached.
Mr Zelenskyy previously criticised Vladimir Putin’s “desire to drag [the war] out”, and said Kyiv was “working on major defence agreements with America”.
It comes after weeks of frustration from Mr Trump over Mr Putin’s refusal to agree to an end to the conflict, with the Russian leader telling the US president he would “not back down” from Moscow’s goals in Ukraine at the start of the month.
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Trump threatens Russia with ‘severe’ tariffs’
During the briefing on Monday, Mr Trump said he had held calls with Mr Putin where he would think “that was a nice phone call”, but then “missiles are launched into Kyiv or some other city, and that happens three or four times”.
“I don’t want to say he’s an assassin, but he’s a tough guy,” he added.
Earlier this year, Mr Trump told Mr Zelenskyy “you’re gambling with World War Three” in a fiery White House meeting, and suggested Ukraine started the war against Russia as he sought to negotiate an end to the conflict.
After Mr Trump’s briefing, Russian senator Konstantin Kosachev said on Telegram: “If this is all that Trump had in mind to say about Ukraine today, then all the steam has gone out.”
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Meanwhile, Mr Zelenskyy met with US special envoy Keith Kellogg in Kyiv, where they “discussed the path to peace” by “strengthening Ukraine’s air defence, joint production, and procurement of defence weapons in collaboration with Europe”.
He thanked both the envoy for the visit and Mr Trump “for the important signals of support and the positive decisions for both our countries”.
Donald Trump has agreed to send “top of the line weapons” to NATO to support Ukraine – and threatened Russia with “severe” tariffs if it doesn’t agree to end the war.
Speaking with NATO secretary general Mark Rutte during a meeting at the White House, the US president said: “We’ve made a deal today where we are going to be sending them weapons, and they’re going to be paying for them.
“This is billions of dollars worth of military equipment which is going to be purchased from the United States,” he added, “going to NATO, and that’s going to be quickly distributed to the battlefield.”
Weapons being sent include surface-to-air Patriot missile systems and batteries, which Ukraine has asked for to defend itself from Russian air strikes.
Pic: Reuters
Mr Trump also said he was “very unhappy” with Russia, and threatened “severe tariffs” of “about 100%” if there isn’t a deal to end the war in Ukraine within 50 days.
The White House added that the US would put “secondary sanctions” on countries that buy oil from Russia if an agreement was not reached.
It comes after weeks of frustration from Mr Trump against Vladimir Putin’s refusal to agree to an end to the conflict, with the Russian leader telling the US president he would “not back down” from Moscow’s goals in Ukraine at the start of the month.
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Trump says Putin ‘talks nice and then bombs everybody’
During the briefing on Monday, Mr Trump said he had held calls with Mr Putin where he would think “that was a nice phone call,” but then “missiles are launched into Kyiv or some other city, and that happens three or four times”.
“I don’t want to say he’s an assassin, but he’s a tough guy,” he added.
Earlier this year, Mr Trump told Ukrainian leader Volodymyr Zelenskyy “you’re gambling with World War Three” in a fiery White House meeting, and suggested Ukraine started the war against Russia as he sought to negotiate an end to the conflict.
After Mr Trump’s briefing, Russian senator Konstantin Kosachev said on Telegram: “If this is all that Trump had in mind to say about Ukraine today, then all the steam has gone out.”
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Meanwhile, Mr Zelenskyy met with US special envoy Keith Kellogg in Kyiv, where they “discussed the path to peace” by “strengthening Ukraine’s air defence, joint production, and procurement of defence weapons in collaboration with Europe”.
He thanked both the envoy for the visit and Mr Trump “for the important signals of support and the positive decisions for both our countries”.
At least 30 people have been killed in the Syrian city of Sweida in clashes between local military groups and tribes, according to Syria’s interior ministry.
Officials say initial figures suggest around 100 people have also been injured in the city, where the Druze faith is one of the major religious groups.
The interior ministry said its forces will directly intervene to resolve the conflict, which the Reuters news agency said involved fighting between Druze gunmen and Bedouin Sunni tribes.
It marks the latest episode of sectarian violence in Syria, where fears among minority groups have increased since Islamist-led rebels toppled President Bashar al Assad in December, installing their own government and security forces.
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In March, Sky’s Stuart Ramsay described escalating violence within Syria
The violence reportedly erupted after a wave of kidnappings, including the abduction of a Druze merchant on Friday on the highway linking Damascus to Sweida.
Last April, Sunni militia clashed with armed Druze residents of Jaramana, southeast of Damascus, and fighting later spread to another district near the capital.
But this is the first time the fighting has been reported inside the city of Sweida itself, the provincial capital of the mostly Druze province.
The Syrian Observatory for Human Rights (SOHR) reports the fighting was centred in the Maqwas neighbourhood east of Sweida and villages on the western and northern outskirts of the city.
It adds that Syria’s Ministry of Defence has deployed military convoys to the area.
Western nations, including the US and UK, have been increasingly moving towards normalising relations with Syria.
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UK aims to build relationship with Syria
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Read more from Sky News:
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Concerns among minority groups have intensified following the killing of hundreds of Alawites in March, in apparent retaliation for an earlier attack carried out by Assad loyalists.
That was the deadliest sectarian flare-up in years in Syria, where a 14-year civil war ended with Assad fleeing to Russia after his government was overthrown by rebel forces.
The city of Sweida is in southern Syria, about 24 miles (38km) north of the border with Jordan.
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