Therese Coffey says Britons should ‘be assured’ by UK’s finances – as Bank of England makes second intervention in two days

Published

3 years ago

October 11, 2022

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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”.

Truss meets with cabinet as Labour calls for mini-budget U-turn – Politics latest

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.”

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.

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.

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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.

World

Mile after mile of grey rubble – the view from a plane dropping aid to Gaza

Published

10 hours ago

July 29, 2025

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Mile after mile of grey rubble - the view from a plane dropping aid to Gaza

We are on our way to Gaza with the Jordanian military.

The aircraft is hot and noisy and as we get closer, the atmosphere gets more tense. Aircrew gesture with their hands to tell us how many minutes there are to go. Fifteen. Six. One.

The Jordanian military C-130 flies out over the sea before banking and heading inland for Gaza. The parachutes, attached to the top of each of the eight pallets, are prepared for the drop.

As land approaches, I look down. The ground is modern and built up – we’re still over southern Israel.

Then a few short minutes later, it’s clear we’ve crossed Gaza’s border.

The ground turns grey, the shapes of buildings disappear, there are no cars, no people.

You can see the outline of communities and villages that are now flattened. Mile after mile of grey rubble.

This mission by the Royal Jordanian Air Force is one of the first aid drop flights since Israel announced they could resume. It is carrying eight tonnes of food and baby formula.

Foreign nations know this is a deeply flawed way of delivering aid – road convoys are far more effective and can carry far more – but the Jordanian flight crew say the need in Gaza is so urgent, it’s simply an attempt to do something.

When the aircraft ramp opens, the aid is pushed out and it’s gone in seconds.

The parachutes seem peaceful as they open and their fall slows. But dropping food from the sky is a dangerous and undignified way to feed people.

On the ground it’s chaos.

Our colleagues in Gaza say the fighting for food has become lethal – gangs are now punching and stabbing people to reach it first. Most critically, it’s not getting to the weakest. To those who really need it.

One man becomes emotional as he describes racing to find food and leaving with nothing.

“I came only for my son,” he says. “I wouldn’t come here if it was just for me. When you have a child, they need bread.”

He’s an engineer in normal times and seems in disbelief that his life has come to this. “The aid comes from the sky and we have to run after it. I’ve never had to do this in my life.”

It is hoped Israel’s humanitarian pauses in fighting will rapidly increase food distribution by road but it’s very unclear how that is going.

Hospitals in Gaza have reported another 14 deaths from starvation in the last 24 hours, the Gaza health ministry said on Monday.

Airstrikes killed another at least 78 Palestinians across Gaza on Monday, local health officials said.

We cannot verify these numbers because Israel has not allowed international journalists access to Gaza.

And Monday’s flight came with strict media conditions.

We were told the Israeli side had warned that any shots of Gaza filmed from the air could result in these aid flights being cancelled.

But Israel’s tight grip has not stopped the images from Gaza getting out, horrifying people around the world.

The question now is what more the international community will do about it.

World

Israeli human rights organisations accuse country of genocide

Published

13 hours ago

July 28, 2025

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Israeli human rights organisations accuse country of genocide

Two Israeli human rights organisations have said the country is committing genocide against Palestinians in Gaza.

In reports published on Monday, B’Tselem and Physicians for Human Rights (PHR) said Israel was carrying out “coordinated, deliberate action to destroy Palestinian society in the Gaza Strip”.

The two groups are the first major voices within Israeli society to make such accusations against the state during nearly 22 months of war against Hamas.

Israel has vehemently denied claims of genocide. David Mencer, a spokesperson for the government, called the allegation by the rights groups “baseless”.

He said: “There is no intent, (which is) key for the charge of genocide… it simply doesn’t make sense for a country to send in 1.9 million tonnes of aid, most of that being food, if there is an intent of genocide.”

B’Tselem director Yuli Novak called for urgent action, saying: “What we see is a clear, intentional attack on civilians in order to destroy a group.”

The organisation’s report “is one we never imagined we would have to write,” Ms Novak said. “The people of Gaza have been displaced, bombed, and starved, left completely stripped of their humanity and rights.”

PHR said Israel’s military campaign shows evidence of a “deliberate and systemic dismantling of Gaza’s health and life-sustaining systems”.

Both organisations said Israel’s Western allies were enabling the genocidal campaign, and shared responsibility for suffering in Gaza.

“It couldn’t happen without the support of the Western world,” Ms Novak said. “Any leader that is not doing whatever they can to stop it is part of this horror.”

Hamas said the reports by the two groups were a “clear and unambiguous testimony from within Israeli society itself regarding the grave crimes perpetrated by the occupation regime against our people”.

Dire humanitarian conditions

Since Israel launched its offensive in Gaza following the deadly Hamas attack on 7 October 2023, nearly 60,000 people – mostly civilians – have been killed, according to Gaza health officials.

Much of the infrastructure has been destroyed, and nearly the whole population of more than two million has been displaced.

An increasing number of people in Gaza are also dying from starvation and malnutrition, according to Gaza health authorities.

On Monday, the Gaza health ministry reported that at least 14 people had died from starvation and malnutrition in the past 24 hours, raising the total number of hunger-related deaths during the war to 147.

Among the victims were 88 children, with most of the deaths occurring in recent weeks.

UN agencies say the territory is running out of food for its people and accuse Israel of not allowing enough aid deliveries to the enclave. Israel denies those claims.

Israeli Prime Minister Benjamin Netanyahu on Sunday said “there is no starvation in Gaza” and vowed to fight on against Hamas.

US President Donald Trump said on Monday that many in Gaza are facing starvation and implied that Israel could take further steps to improve humanitarian access.

Israel has repeatedly said its actions in Gaza are in self-defence, placing full responsibility for civilian casualties on Hamas. It cites the militant group’s refusal to release hostages, surrender, or stop operating within civilian areas – allegations that Hamas denies.

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Why are airdrops on Gaza so dangerous?

Published

22 hours ago

July 28, 2025

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The United Nations has condemned airdrops on Gaza, warning they risk killing the starving Palestinians they are intended to help.

Jordan, the United Arab Emirates, and Israel parachuted aid packages into the territory for the first time in months at the weekend amid claims a third of the population has not eaten for days.

But Philippe Lazzarini, commissioner-general for the UN Relief and Work Agency for Palestinian Refugees (UNRWA), has said they “will not reverse the deepening starvation” and often do more harm than good.

‘Make or break’ as starvation looms; Middle East latest

“They are expensive, inefficient & can even kill starving civilians,” he wrote in a statement on X.

What is an airdrop – and why are they dangerous?

There are several ways humanitarian agencies and international allies can deliver aid to regions in need – by land, by sea, or by air.

While parachuting in supply packages from planes may look impressive, airdrops are “fraught with problems”, Sky correspondent in Jordan Sally Lockwood says, and often used as a “desperate last resort”.

“Foreign nations know airdrops are a deeply flawed way of delivering aid,” she says.

“Palestinian sources tell us the aid that’s been dropped so far is not reaching the most vulnerable. They are an attempt to get something to a few – often viewed as a desperate last resort. Gaza is at that point.”

Military analyst Sean Bell says that delivering aid by air is ideally done when planes can land on a runway – but Gaza’s only landing strip in Rafah was shut down in 2021.

The alternative is “very dangerous”, he warns. “Aircraft flying relatively low and slow over a warzone isn’t very clever. When these parcels hit the ground, there’s a significant danger of them hitting people.”

Crucially, they can only deliver a fraction of what lorries can.

“The really big issue is aircraft can only deliver one truckload of aid. Gaza needs 500 truckloads a day, so it’s 0.2% of the daily need,” Bell adds.

They also risk falling into the wrong hands and ending up on the black market.

“Some of it has been looted by gangs and is on the black market already,” Lockwood says.

Why are they happening now?

Israel cut off all supplies to Gaza at the beginning of March, reopening some aid centres in May, but with restrictions they said were designed to stop goods being stolen by Hamas militants.

Israeli authorities control the only three border crossings to the strip: Kerem Shalom in the south, Crossing 147 in the centre, and Erez to the north.

Since the current conflict with Hamas began in October 2023, humanitarian agencies and world leaders have repeatedly accused Israel of not allowing enough deliveries through.

Mr Lazzarini says the UN has “the equivalent of 6,000 trucks” in neighbouring Jordan and Egypt “waiting for the green light to get into Gaza”.

Israel says it has commissioned a “one-week scale-up of aid”, having conducted its own airdrops on Saturday.

In a statement over the weekend, the Israeli Defence Forces said it will work with the UN and other aid organisations to ensure aid is delivered but no more details were given.

Meanwhile on Sunday, it began daily 10-hour pauses in fighting in three areas of Gaza to address the deteriorating humanitarian situation.

According to the Hamas-run health ministry, 133 Palestinians had died of malnutrition by then, including 87 children.

Doctors Without Borders warned on Friday that 25% of young children and pregnant women in Gaza are malnourished.

Israel says there is no famine in Gaza.

What are in the airdrops and who is behind them?

Air packages are largely being delivered by C-130 planes. Jordan is reported to be using 10 and the UAE eight.

They can carry eight pallets of goods each, weighing around eight tonnes in total, according to Lockwood, who is on the runway at Jordan’s King Abdullah II airbase.

There are no medical supplies in the packages, she says, only dried food, rice, flour, and baby formula.

Prime Minister Sir Keir Starmer has said the UK will help with airdrops – but no British aircraft have been seen in Jordan so far.

He will discuss the matter with US President Donald Trump during talks in Scotland on Monday.

The RAF delivered 110 tonnes of aid across 10 drops last year as part of a Jordanian-led international coalition – but it is not clear what level of support will be offered this time.