Jacob Rees-Mogg says he has ‘confidence’ in Bank of England governor Andrew Bailey but disputes pension funds ‘at risk’
Jacob Rees-Mogg has declared his confidence in the governor of the Bank of England, but disputed that pension funds are at “systemic” risk.
Speaking to Sky News, the business secretary said “of course” he has confidence in Andrew Bailey, describing him as “respected”.
He questioned, however, whether there was a “systemic problem” with pensions after the Bank of England expanded its market intervention to help pension funds for the second time in two days on Tuesday by buying up index-linked gilts.
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The Bank had warned of a “material risk to UK financial stability” with “fire sales” of assets if it did not act.
The business secretary said that on the whole, pension funds “aren’t at risk”, but added: “Some pension funds have taken some high risk investments.”
He told Sky News that the “rightly independent” Bank intervened to protect these “risky investments”.
The Bank confirmed yesterday that its emergency support operation to protect pension funds would end this week.
Mr Rees-Mogg repeatedly refused to be drawn on whether the Bank was right to signal an end to its market intervention.
“I’m not going to criticise the Bank of England or the governor,” he said. “It is not for me to speculate on what the Bank of England is doing.”
He also insisted to Kay Burley that parts of the economy were in a “good state” as he admitted that after the economic turmoil of recent weeks his own mortgage payments have gone up.
“Mortgage rates have gone up for everyone who has a mortgage, and I have a mortgage,” he said.
“Any floating rate mortgages have gone up.”
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‘Be careful about forecasts’
Earlier this morning, new Office for National Statistics figures indicated that the economy shrank by 0.3% between July and August, a fall from downwardly revised growth of 0.1% the previous month.
Mr Rees-Mogg urged caution in interpreting them.
“The previous quarter’s figure showed a contraction [and] was then revised to show economic growth. So, be very careful about how you interpret figures immediately after they’re released,” he told Sky News.
“It’s a small amount of a very large economy, but these figures are notorious for being revised afterwards.”
The business secretary also refused to indicate his own view on whether benefits should rise in line with inflation, an issue that has split the Conservative Party.
“We haven’t yet had the inflation figure on which benefits will be set. So, that is something that will be decided once the figure is available,” he said.
“Most predictions, most economic forecasts, turn out to be inaccurate rather than spot on. So, one has got to be careful about forecasts.”
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‘Routine decision-making’
Mr Rees-Mogg said the decision on benefits would be made once inflation figures come out.
“There is a process for making this decision,” he said.
“The statutory instrument has to be laid in November to put through the increase. That will be done in the normal way. This is completely routine governmental decision-making.”
In the Commons on Tuesday Julian Smith, a former cabinet minister, warned Kwasi Kwarteng, the chancellor, that the government must not balance tax cuts “on the back of the poorest people in our country”.
The government has already been forced to abandon plans to scrap the top 45p rate of tax in the face of a threatened revolt.
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Liz Truss, the prime minister, will face MPs in the Commons on Wednesday for the first time since Mr Kwarteng’s £43bn tax-cutting mini-budget caused economic turmoil.
On Tuesday, the International Monetary Fund warned that Mr Kwarteng’s package of unfunded tax cuts was making it harder for the Bank to get soaring inflation rates under control.
The Institute for Fiscal Studies has warned the chancellor he will have to find £60bn in public spending cuts if he persists with his tax plans.
Nigel Farage has told Sky News he “can’t be pushed or bullied” by anybody after Elon Musk said the Reform MP “doesn’t have what it takes” to lead his party.
In an interview with Sky’s political correspondent Ali Fortescue, Mr Farage said he has spoken with the billionaire owner of X since his criticism on 5 January, when Mr Musk said: “The Reform Party needs a new leader. Farage doesn’t have what it takes.”
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Asked if the pair are still friends, Mr Farage said: “Of course we’re friends. He just says what he thinks at any moment in time.”
He added he has “been in touch” with Mr Musk, though wouldn’t divulge what they had discussed.
“Look, he said lots of supportive things. He said one thing that wasn’t supportive. I mean, that’s just the way it is,” Mr Farage said.
Musk and Farage met in December. Pic: PA
Asked if he was afraid to criticise the tech mogul, the Clacton MP said the situation was “the opposite”, and he openly disagreed with Mr Musk on his views on far-right activist Tommy Robinson.
Mr Farage said: “What he [Musk] was saying online was that effectively Tommy Robinson was a political prisoner and I wouldn’t go along with that.
“If I had gone along with that, he wouldn’t have put out a tweet that was against me.
“By the way, you know, I can’t be pushed or bullied or made to change by anybody.
“I stick to what I believe.”
Mr Musk has endorsed Robinson and claimed he was “telling the truth” about grooming gangs, writing on X: “Free Tommy Robinson”.
But Mr Farage said that Robinson, who is serving an 18-month jail term for contempt of court, isn’t welcome in Reform UK and neither are his supporters.
He said: “If people within Reform think Tommy Robinson should be a member of Reform and play a central role in Reform, that disagreement is absolutely fundamental.
“I’ve never wanted to work with people who were active in the BNP. I’ve made that clear right throughout the last decade of my on/off political career. So that’s what the point of difference is.”
Despite their disagreement, Mr Farage said he is confident Mr Musk will continue to support Reform and “may well” still give money to it.
The entrepreneur has previously spoken positively about Reform UK and there have been suggestions he could make a multi-million-pound donation in its favour.
Devolution plans ‘denial of democracy’
Mr Farage was speaking from Reform’s South East of England Conference, one of a series of regional events aimed at building up the party’s support base.
Elsewhere in the interview, he hit out at the Labour government’s devolution plans which could see some local elections scheduled for May postponed.
This would apply when councils seek permission to reorganise, so that smaller district authorities merge with other nearby ones to give them more sway over their area.
Mr Farage, who is hoping to make gains in the spring contests, claimed the plans are not about devolution but about “elections being cancelled”.
“I thought only dictators cancelled elections. This is unbelievable and devolution or a change to local government structures is being used as an excuse,” he said.
Reform UK leader Nigel Farage earlier this month. Pic: PA
He claimed Tory-controlled councils are “grabbing it like it’s a life belt”, because they fear losing seats to Reform.
“It’s an absolute denial of democracy,” he added.
Mr Farage was also asked why many Reform members don’t like to speak on camera about why they support his party.
He said he did not accept there was a toxicity associated with Reform and claimed there was “institutional bias against anybody that isn’t left of centre”.
Specialist search teams, police dogs and divers have been dispatched to find two sisters who vanished in Aberdeen three days ago.
Eliza and Henrietta Huszti, both 32, were last seen on CCTV in the city’s Market Street at Victoria Bridge at about 2.12am on Tuesday.
The siblings were captured crossing the bridge and turning right onto a footpath next to the River Dee in the direction of Aberdeen Boat Club.
Henrietta Huszti. Pic: Police Scotland
Eliza Huszti. Pic: Police Scotland
Police Scotland has launched a major search and said it is carrying out “extensive inquires” in an effort to find the women.
Chief Inspector Darren Bruce said: “Local officers, led by specialist search advisors, are being assisted by resources including police dogs and our marine unit.”
Aberdeenshire Drone Services told Sky News it has offered to help in the search and is waiting to hear back from Police Scotland.
CCTV of the sisters. Pic: Police Scotland
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The sisters, from Aberdeen city centre, are described as slim with long brown hair.
Police said the Torry side of Victoria Bridge where the sisters were last seen contains many commercial and industrial units, with searches taking place in the vicinity.
The force urged businesses in and around the South Esplanade and Menzies Road area to review CCTV footage recorded in the early hours of Tuesday in case it captured anything of significance.
Drivers with relevant dashcam footage are also urged to come forward.
CI Bruce added: “We are continuing to speak to people who know Eliza and Henrietta and we urge anyone who has seen them or who has any information regarding their whereabouts to please contact 101.”
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