Truss says UK economy ‘needs a reset’ after market sell-off

Prime Minister Liz Truss has said “the UK economy needs to restart” and promised the Conservative Party was ready to hold its annual meeting after a week of market turmoil to prioritise “aspiration, business and growth”.

MPs and party members will meet in Birmingham on Sunday, where Truss is expected to seek support for her political vision.

She grew increasingly dissatisfied with the government’s £45bn “mini” budget last week, after which the pound fell to a record low against the dollar, gilts sold off sharply, banks pulled out of thousands of mortgage products and the Bank of England issued 650 100 million pound bond-buying program to stabilize government debt markets.

Truss said Saturday night that the Conservatives were “a party of ambition, progress and growth”.

“We believe in making it easier for our wealth creators, doers and makers to get the job done,” she said. “The UK economy needs to restart. We cannot continue on our current controlled downward trajectory. Instead, we must take a new direction. I will lead us on the path to a better future.”

The overarching theme of the four-day conference will be ‘Moving the UK’, with speakers addressing issues such as public services and boosting economic growth.

Truss, who is expected to address Conservative Party members on Wednesday, argues that the party remains committed to fiscal responsibility and that a high-tax, low-growth economy is unsustainable.

However, some in the party have expressed concern about the impact of the government’s economic plans on public confidence. Conservative bigwig Charles Walker warned on Friday that the Conservatives risk losing the next general election, as he stressed their responsibility to “keep public finances in the best possible shape”.

Recent polls show widespread public dissatisfaction with the government, with Labour leading by 33 percentage points, according to a YouGov poll released earlier this week.

inside The Sun Over the weekend, Truss acknowledged that her government’s “small” budget had caused short-term “chaos”, but insisted she “has an “iron fist” over the state’s finances.

“Not everyone will like what we’re doing, but I want to assure the public that the government has a clear plan that I think is appropriate for the country,” Truss wrote.

Truss and Chancellor Quasi Kwaten met with officials from the Office of Budget Responsibility on Friday to reassure them of their commitment to reducing debt and boosting growth.

write on The Telegraph, Kwarteng believes that even in the face of “extreme volatility in global markets”, governments will demonstrate to investors that their economic plans “are sound, credible and committed to driving growth”. He will address Conservative MPs on Monday.

The chancellor is expected to outline his fiscal plan on November 23, along with the OBR’s forecast on the economic impact of government policies.

Upgrades Minister Simon Clark warned that cuts to public spending may be needed to support the government’s policies. “I do think it’s very difficult to cut taxes if you don’t have corresponding spending and supply-side reforms,” ​​he said in an interview. The Age.

Speaking on Saturday, Welsh Secretary of State Robert Buckland denied that investor unease was entirely due to the “mini” budget.

“We’ve seen sterling, yen, euro weaken against the dollar over the past few months,” he told BBC Radio 4’s Today programme on Saturday. “I don’t think it’s fair to say Friday was the only reason for the turmoil.”

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