Kwasi Kwarteng refuses to comment as pound hits all-time low against dollar
Kwasi Kwarteng refused to comment as the pound hit an all-time low against the dollar, with speculation that the Bank of England could intervene as soon as Monday and Tory MPs in a panic about the effect on the party’s reputation.
The chancellor was questioned repeatedly by the BBC about the turmoil in the markets as a result of his planned tax cuts and tens of billions of pounds in extra borrowing, as he walked to his office in Westminster.
He told the broadcaster: “I’m not going to make any comment about what’s going on now.”
Earlier, a spokesperson for No 10 said: “I think that the chancellor has made clear that he doesn’t comment on the movements around the market, and that goes the same for the prime minister.
“The UK with the second lowest debt-to-GDP ratio in the G7 is investing in its future. That’s through a growth plan while remaining fiscally responsible and committed to driving down debt in the medium term.
“The growth plan, as you know, includes fundamental supply side reforms to deliver higher and sustainable growth for the long term, and that is our focus.”
Some Conservative MPs, including a few who backed Truss for the leadership, are privately extremely concerned about the market reaction.
There was talk on Monday of Tory MPs putting letters in to the 1922 Committee in an effort to oust Truss within weeks of her taking office. However, others thought it would make the situation worse and they should give her and Kwarteng more time to row back or take remedial action.
One senior Conservative MP said Kwarteng’s gamble was always going to be “either a spectacular success or a spectacular failure” and it left the government with “absolutely no wriggle room” if there needed to be further bailouts for energy or Covid
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