Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Kwarteng disregarded warnings on mini-budget, MPs told

by December 13, 2022
December 13, 2022
Kwarteng disregarded warnings on mini-budget, MPs told

Kwasi Kwarteng disregarded warnings that his £45bn mini-budget could trigger a backlash on the financial markets, Treasury officials told MPs today.

The department’s permanent secretary, James Bowler, said he was “absolutely confident Treasury officials set out the right advice” to the then chancellor.

He conceded that they could not persuade Kwarteng to change his view, saying “officials advise but ministers decide”.

Bowler took over as the top civil servant in the Treasury in October after his predecessor, Sir Tom Scholar, was sacked by Liz Truss’s government.

Cat Little and Beth Russell, who stepped up to lead the department during the gap and now are joint second permanent secretaries, outlined the advice the former chancellor received.

Russell told the Commons Treasury select committee on Monday: “Cat and I are confident that we gave all the advice to ministers on the economic and fiscal backdrop, the impacts and the market position and particularly around the financing requirement, which was a big issue because of the cost of the measures.”

Asked if there was more they could have done, she said: “Ultimately the decisions here are for the ministers. It’s our job to make sure we give the best advice possible on the impacts and the consequences, and I think we both feel we did that on the situation in the markets.”

The mini-budget delivered by Kwarteng on 23 September was meant to be a plan for growth, but instead spooked investors in the financial markets and led to the downfall of Truss as prime minister.

Bowler told MPs the financial chaos, as well as the coronavirus pandemic and the response to the war in Ukraine, has dented morale in the Treasury.

“It’s been a tough year for Treasury civil servants,” he said. “There’s been a lot of crisis upon crisis, so Covid, Ukraine energy, so the mini-budget came on top of that.

“Political change, so four chancellors since the summer, and in some quarters negative commentary on Treasury civil servants, none of that has been helpful. In terms of morale I think that has had an impact but staff understand they’re working on really, really important areas.”

Bowler started as permanent secretary on 10 October after Scholar was sacked on 8 September, with his ousting being partly blamed for the financial crisis. “I think Tom’s departure wasn’t normal,” Bowler said.

Britain’s economy returned to growth after the Office for National Statistics (ONS) said that GDP rose by 0.5% in October. Despite the encouraging report the chancellor, Jeremy Hunt, has warned the economy was “likely to get worse before it gets better”.

Read more:
Kwarteng disregarded warnings on mini-budget, MPs told

0
FacebookTwitterGoogle +Pinterest
previous post
Sunak urged not to focus on cutting immigration amid UK staff shortages
next post
Rivian pulls plug on Mercedes electric van deal

You may also like

UKEF support helps UK boat manufacturer charter new...

June 13, 2023

UK insolvencies surpass financial crisis levels as interest...

August 20, 2024

The Current Trends For Urinary Tract Support Supplements

December 7, 2022

Government urged to review £2bn in Fujitsu contracts...

January 11, 2024

British LGBT Awards 2025 unveils shortlist of business...

February 26, 2025

NatWest Group launches Peppy menopause support to employees

August 24, 2022

TUC warns that removing bankers bonus cap will...

October 31, 2023

Electric cars drive UK MG sales to more...

October 16, 2023

Royal Mail resumes overseas deliveries via post offices...

February 21, 2023

Wales considers 25% income tax cut to tackle...

September 20, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Blue state Republicans threaten rebellion if Senate changes key provision in Trump’s ‘big, beautiful bill’

      June 5, 2025
    • Ricketts, Fetterman team up for crackdown on China’s attempts to purchase US farmland

      June 5, 2025
    • Hamas working to ‘sabotage’ Trump-backed aid group with ‘fake news’: Israeli official

      June 5, 2025
    • Longtime Trump loyalist flips on GOP’s ‘big, beautiful bill’

      June 5, 2025
    • Supreme Court rules Wisconsin unconstitutionally discriminated against Christian charity

      June 5, 2025
    • Trump touts ‘very positive’ breakthrough with Xi after slamming China for trade violation

      June 5, 2025

    Categories

    • Business (8,147)
    • Investing (2,008)
    • Politics (15,529)
    • Stocks (3,128)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved