Former chancellor Kwasi Kwarteng has admitted he has been “affected” by his own mini-budget which was blamed for creating economic turmoil while Liz Truss was prime minister.
However, he denied he was to blame for the wider economic situation and rising interest rates, which he said falls under the responsibility of the Bank of England.
Speaking to GB News’s Camilla Tominey, Mr Kwarteng was asked whether he had any sympathy with those facing higher mortgage costs.
“Of course I do”, he replied.
“I’m probably revealing too much: I’m on a tracker, so I’m affected as well. They’ve gone up considerably.”
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‘I’m cutting everything out just to survive’
Asked whether he had been “screwed by your own mini-budget?”, he replied: “No, not at all because Camilla we are mixing two things.”
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He added: “The Bank of England was in charge of inflation and my tracker rate and other people’s tracker rates will be linked to the Bank rate, and whatever margin you have to pay.
“And the reason why interest rates have gone up very high is because we’ve totally missed the goal on inflation, we’ve totally misjudged inflation.”
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Asked how much his mortgage bill had gone up by, Mr Kwarteng said: “A lot. We bought the house in 2021 so it’s gone up quite a bit since then.
“I’m just as exposed to interest rates as anyone else.”
In his mini-budget on 23 September, Mr Kwarteng unveiled £45bn in unfunded tax cuts and the promise to abolish the 45p top rate of tax.
The mini-budget, otherwise known as the “fiscal event”, triggered turbulence in the financial markets, sent the pound tumbling and led to an unprecedented intervention by the Bank of England stop pension funds collapsing and pushing mortgage rates up.
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Inflation should ‘fall over the coming months’
Mortgage costs increased significantly following the turmoil of the mini-budget, while lenders pulled a record number of mortgages in a single day the following week.
Last month, fixed mortgage rates rose again after a brief fall, according to financial information company Moneyfacts.
The quarter percentage point increase was smaller than some economists had expected, following the release of lower-than-anticipated inflation data last month.
Inflation currently stands at 7.9%.
Bank of England Governor Andrew Bailey defended the interest rate hike on the grounds it was necessary to bring inflation down to its 2% target.
“We know that inflation hits the least well off hardest and we need to make absolutely sure that it falls all the way back to the 2% target. That’s why we’ve raised rates to 5.25% today,” he said.
The chief rabbi has described the BBC’s response to anti-IDF chanting at Glastonbury as “belated and mishandled” – as the punk-rap duo involved, Bob Vylan, said the UK government needed to talk about its “criminal inaction”.
Sir Ephraim Mirvis said “vile Jew-hatred” had been aired at the Somerset music festival and it was a “time of national shame”.
Confidence in the BBC’s “ability to treat antisemitism seriously” has been brought to a “new low”, he said in a post on X, adding that “outright incitement to violence and hatred” appeared to be acceptable if it was couched as “edgy political commentary”.
Ordinary people had not only failed to see incitement “for what it is” but had cheered it, chanted it, and celebrated it, he said. “Toxic Jew-hatred is a threat to our entire society,” he added.
Bob Vylan, posting a new statement on Instagram on Tuesday, said they were “not for the death of Jews, Arabs or any other race or group of people”.
Rather, they were for the “dismantling of a violent military machine” – the Israel Defence Forces.
Bob Vylan chanted “death to the IDF” at Glastonbury. As many as 95% of the IDF are thought to be Jewish.
In their statement, the group said they were a “distraction from the story” and that whatever “sanctions” they received would also be a distraction.
Their US visas have been revoked and United Talent Agency, their US representatives, have dropped them.
Image: Bob Vylan with their MOBO award in London in November 2022. Pic: Reuters
Referring to the war in Gaza, they claimed the UK government does not want them to ask “why they remain silent in the face of this atrocity”, “why they aren’t doing more to stop the killing” and “feed the starving”.
They added: “The more time they talk about Bob Vylan, the less time they spend answering for their criminal inaction.
“We are being targeted for speaking up. We are not the first, we will not be the last, and if you care for the sanctity of human life and freedom of speech, we urge you to speak up, too.”
It has emerged that Tim Davie, the BBC’s director-general, was at Glastonbury when the duo led chants of “Death to the IDF” which were broadcast live.
The prime minister’s spokesman, asked if the PM had confidence in Mr Davie, said Sir Keir Starmer had “confidence in the BBC”, adding: “The position of the director-general is a matter for the BBC’s board.”
Speaking in the Commons, Culture Secretary Lisa Nandy said “accountability” was important and it was something she had “impressed upon the BBC leadership”.
She added: “When you have one editorial failure, it’s something that must be gripped. When you have several, it becomes a problem of leadership.”
The cabinet minister said she’d called Mr Davie after Bob Vylan’s set had been broadcast to find out why it had aired, and why the feed had not been cut.
“I expect answers to these questions without delay,” she said.
Meanwhile Dame Caroline Dinenage, chair of the culture, media and sport committee, has written to Mr Davie in relation to the corporation’s Glastonbury coverage.
The committee has said the letter asks about editorial and decision-making processes and whether consideration was given to broadcasting with a delay. It also asks about staffing levels at the festival and contingency planning.
Image: Lisa Nandy, the culture secretary, has claimed there is a ‘problem of leadership’ at the BBC. File pic: PA
Avon and Somerset Police has begun a criminal investigation and is reviewing footage of both Bob Vylan and Kneecap’s performances at Glastonbury.
The force said a senior detective had been appointed – and it had been contacted by people from around the world.
“We… recognise the strength of public feeling,” it said.
During Kneecap’s set, one member suggested starting a “riot” outside his bandmate’s forthcoming court appearance, before clarifying that he meant “support”. Liam Og O hAnnaidh, also known as Mo Chara, is charged with a terror offence.
Image: Moglai Bap and Mo Chara of Kneecap performing at Glastonbury. Pic: Reuters
Bob Vylan had been due to tour the US before their visas were revoked.
US deputy secretary of state Christopher Landau said action had been taken “in light of their hateful tirade at Glastonbury, including leading the crowd in death chants”.
“Foreigners who glorify violence and hatred are not welcome visitors to our country,” he added.
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During Bob Vylan’s set, the duo performed in front of a screen that showed several messages, including one that claimed Israel’s actions in Gaza amounted to “genocide”.
The war in Gaza began after Hamas militants attacked Israel on 7 October 2023 and killed 1,200 people and took about 250 hostage.
Israel’s offensive in Gaza has led to the deaths of more than 56,500 people, according to the Hamas-run health ministry, which does not differentiate between civilians and combatants.
Media watchdog Ofcom has said the BBC “clearly has questions to answer” over the live stream from Glastonbury.
A BBC spokesperson said: “The director-general was informed of the incident after the performance and at that point he was clear it should not feature in any other Glastonbury coverage.”
The broadcaster respects freedom of expression but “stands firmly against incitement to violence”, they said.
They added: “The antisemitic sentiments expressed by Bob Vylan were utterly unacceptable and have no place on our airwaves…
“The team were dealing with a live situation, but with hindsight we should have pulled the stream during the performance. We regret this did not happen.”