British Prime Minister Liz Truss is refusing to back down on her tax-cutting mini-budget despite economic turmoil, saying on Thursday it was the “right plan”.
In her first public comments since Chancellor Kwasi Kwarteng unveiled the proposals last Friday, which have led to almost a week of financial chaos, Ms Truss dismissed concerns.
After remaining silent this week, on Thursday she undertook a media blitz which included 15 quick-fire interviews with BBC local radio stations across the country.
Ms Truss told BBC Radio Leeds “we were here” because of Russia’s war against Ukraine, which pushed up energy prices.
“Currencies are under pressure around the world,” she said. “And that’s why it’s so important that this government took urgent action."
The mini-budget, or so-called “fiscal event” on Friday, represented the biggest tax cuts in 50 years.
Its announcement unleashed turmoil in the markets, with the pound sinking to its lowest level against the dollar to only $1.03 on Monday.
Two days later, the Bank of England was forced to intervene to buy up gilts — UK government debt in sterling ― after it “warned of a material risk to UK financial stability”.
The bank was forced to act after plunging markets for UK debt sent borrowing costs soaring and forced pension funds to dump their assets because they did not have enough short-term cash to honour some contracts.
The turbulence continued into Thursday, with sterling sliding again in early deals to as low as $1.0763. It later recovered some ground, rising to $1.0857 by 1.30pm UK time.
The prime minister said the government was working “very closely” with the Bank of England, but that it was important the central bank was independent.
“We are facing very, very difficult economic times," she said. "We are facing that on a global level. I talked to a lot of my overseas counterparts, about issues like energy, about making sure we are dealing with the global economy.
“But the important thing is the British government acted to make sure people were protected from these high energy costs, to make sure we are getting the economy going."
The growth will not come through “overnight”, she said. “But what’s important is we are putting this country on a better trajectory for the long term.”
Ms Truss, who will face Tory members next week at the Conservative Party conference, also received questions from members of the public during the round of radio interviews.
She was asked questions such as: "What on earth were you thinking?", "How can we ever trust the Conservatives with our economy again?" and "Are you ashamed of what you've done?".
Ms Truss replied: "I think we have to remember what situation this country was facing.
"We were going into the winter with people expected to face fuel bills of up to £6,000 ($6,522), huge rates of inflation, slowing economic growth.
"And what we've done is we've taken action to make sure that from this weekend, people won't be paying a typical fuel bill of more than £2,500."
She told another presenter the government “had to take urgent action to get our economy growing, get Britain moving and also deal with inflation”.
“And, of course, that means taking controversial and difficult decisions,” she said.
“But I am prepared to do that as prime minister, because what is important to me is that we get our economy moving and we make sure people are able to get through this winter. We are prepared to do what it takes to make that happen.”
She said it was "simply not true" when asked by BBC Radio Nottingham whether her mini-budget was a "reverse Robin Hood" that disproportionately benefited the most wealthy.
She said: "People were facing unaffordable energy bills and the package we presented in the energy statement, but also on the mini-budget last week - the biggest part of that is the help on energy."
She was also questioned about local issues, including fracking, which she said would only take place where a community has consented.
Asked about the replacement of the dilapidated Queen Elizabeth Hospital in King's Lynn, in her own constituency, she said: "I hope the new Health Secretary, Therese Coffey, will visit soon to see the situation and make sure that action is taken," she said.
"She will be the one that delivers but I'm not making promises on her behalf."
At one point she was rendered speechless by a question about the impact of her tax-cutting agenda on people's mortgages across the UK.
BBC Radio Stoke's presenter John Acres pointed out that homeowners' mortgages fees were rising by more than the amount they would save from the energy support.
"I don't think anybody is arguing that we shouldn't have acted on energy," the prime minister replied after a silence.
Meanwhile, former Bank of England governor Sir Mark Carney warned the government on Thursday against undermining the country’s economic institutions. He said it was “working at cross purposes with the bank” with its mini-budget.
Sir Mark said the government also made the mistake of leaving out the “real measures”. He said these would drive the acceleration of growth in the economy, which was necessary for the numbers to add up.
“And so that leads to one last uncertainty and concern, which is maybe the way the numbers are going to add up is through spending cuts, as yet unspecified,” he said. “What would those be and how are those going to be put in place?”
“Unfortunately, having a partial budget in these circumstances — a tough global economy, tough financial market position, working at cross purposes with the bank — has led to quite dramatic moves in financial markets.”
The International Monetary Fund said earlier this week it was “closely monitoring” developments. It also urged Mr Kwarteng to “re-evaluate” his tax measures, saying, in an extraordinary statement, that the plans would increase inequality.
The mini-budget has also led to infighting among Conservatives, with some calling for Mr Kwarteng to go.
However, Chris Philp, Britain's chief secretary to the Treasury, said he disagreed with concerns raised by the IMF.
“I saw the IMF comments. I respectfully disagree,” he told Sky News.
Mr Philp also said the government would stick to its plan to hold a bigger fiscal announcement on November 23.
Meanwhile, World Bank president David Malpass on Wednesday said that it could take years for global energy production to diversify away from Russia after its invasion of Ukraine. This would prolong the risk of "stagflation" ― a period of low growth and high inflation ― he said.
In a speech at Stanford University in California, Mr Malpass said there was an increased likelihood of a recession in Europe. He said China's growth was slowing sharply and US economic output had contracted in the first half of the year.
Those developments would have grave consequences for developing countries, Mr Malpass said. He cited what he called “consequential” and “worsening” challenges facing development.
Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding
Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.
Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.
Until the end of Ramadan, the iftar events take place from 7pm until 9pm, from Saturday to Thursday. Advanced booking is required.
For more details, email openminds@cultures.ae or visit www.cultures.ae
The biog
Hobby: Playing piano and drawing patterns
Best book: Awaken the Giant Within by Tony Robbins
Food of choice: Sushi
Favourite colour: Orange
Navdeep Suri, India's Ambassador to the UAE
There has been a longstanding need from the Indian community to have a religious premises where they can practise their beliefs. Currently there is a very, very small temple in Bur Dubai and the community has outgrown this. So this will be a major temple and open to all denominations and a place should reflect India’s diversity.
It fits so well into the UAE’s own commitment to tolerance and pluralism and coming in the year of tolerance gives it that extra dimension.
What we will see on April 20 is the foundation ceremony and we expect a pretty broad cross section of the Indian community to be present, both from the UAE and abroad. The Hindu group that is building the temple will have their holiest leader attending – and we expect very senior representation from the leadership of the UAE.
When the designs were taken to the leadership, there were two clear options. There was a New Jersey model with a rectangular structure with the temple recessed inside so it was not too visible from the outside and another was the Neasden temple in London with the spires in its classical shape. And they said: look we said we wanted a temple so it should look like a temple. So this should be a classical style temple in all its glory.
It is beautifully located - 30 minutes outside of Abu Dhabi and barely 45 minutes to Dubai so it serves the needs of both communities.
This is going to be the big temple where I expect people to come from across the country at major festivals and occasions.
It is hugely important – it will take a couple of years to complete given the scale. It is going to be remarkable and will contribute something not just to the landscape in terms of visual architecture but also to the ethos. Here will be a real representation of UAE’s pluralism.
AndhaDhun
Director: Sriram Raghavan
Producer: Matchbox Pictures, Viacom18
Cast: Ayushmann Khurrana, Tabu, Radhika Apte, Anil Dhawan
Rating: 3.5/5
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No Shame
Lily Allen
(Parlophone)
A new relationship with the old country
Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates
The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:
ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.
ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.
ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.
ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.
IN WITNESS WHEREOF the undersigned have signed this Treaty.
DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.
Signed
Geoffrey Arthur Sheikh Zayed
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
COMPANY%20PROFILE
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