Key points

• Sterling plunges to all-time low in scathing appraisal of Truss plan
• Starmer resisting pressure from inside own party over reversal of tax cuts
• Labour pledges new ‘wealth fund’ to give taxpayers stake in green British industries
• ‘Shocking’: Labour condemns Liz Truss paying chief of staff through lobbying firm

Reeves accuses Kwarteng of fanning flames of falling pound

09:22 , Emily Atkinson

Shadow chancellor Rachel Reeves has accused Kwasi Kwarteng of having “fanned the flames” of the falling pound by hinting at further “unfunded” tax cuts.

The Labour MP told BBC Radio 4’s Today programme: “It is incredibly concerning.

“I do think the Chancellor fanned the flames in suggesting that there may be more stimulus, more unfunded tax cuts”

Shadow Chancellor Rachel Reeves told @Marthakearney the government was “gambling all of our money”.https://t.co/JqnmIupjz4 | #R4Today pic.twitter.com/6WvZir3XbE

— BBC Radio 4 Today (@BBCr4today) September 26, 2022

“I think many people had hoped over the weekend things would calm down but I do think the chancellor sort of fanned the flames on Sunday in suggesting there may be more stimulus, more unfunded tax cuts, which has resulted overnight in the pound falling to an all-time low against the dollar.”

Truss tax cuts like something from Latin America, says Tory grandee

09:13 , Adam Forrest

Tory grandee Ken Clarke compared the Liz Truss-Kwasi Kwarteng tax cut plan to Latin American governments.

He told BBC Radio 4: “I don’t accept – I never have, the Conservative party never has – the overall premise of the budget, which is that you make tax cuts for the wealthiest 5 per cent, and it makes them work so much harder, and [there’s a] rush to invest.”

He added: “I’m afraid that’s the kind of thing that’s usually tried in Latin American countries without success.”

Pound plunge may trigger beer price hike

09:02 , Emily Atkinson

Paul Davies, chief executive officer at Carlsberg Marston’s Brewing Company, has suggested the fall of the pound may cause a rise in beer prices.

He told BBC Radio 4’s Today programme that the drop was “worrying” for the British beer industry, which imports beer and hops from overseas.

Asked if the value of the pound mattered, he said: “Yes it does, many of the hops used in this country are actually imported and a lot of them, particularly for craft brewers, are imported from the States, so changes in currency is actually worrying for industry, for sure, and then of course people drink a lot of imported beers from Europe, and the euro vs the pound is also something we’re watching very closely at the moment.

“Of course things will rise, I would say as an industry we’re generally using British barley and we’re using a lot of British hops, but of course if you’re drinking double IPA that requires a lot of Citra hop and other hops from the States, and at some point that is going to have to be passed through to both the customer and the consumer if prices are this volatile.”

Food bank interest surges with 250% increase in online searches

08:52 , Emily Atkinson

Interest in food bank services has surged dramatically – with a 250% increase in online searches for “food banks near me” since March 2020, Labour Party analysis shows.

Ahead of his conference party speech, shadow work and pensions secretary Jonathan Ashworth visited the Big Help community group in Liverpool, which provides wrap-around services with food, employment, and debt support.

During his visit, Mr Ashworth revealed Labour’s analysis of Google trends data, which shows searches for “food bank near me” have increased by 250% compared with the first week of March 2020, immediately before the pandemic.

© Provided by The Independent

Food bank interest surges with 250% increase in online searches: Labour analysis

Former deputy governor of Bank of England says he would be worried were he still in role

08:41 , Emily Atkinson

Sir John Gieve, former deputy governor of the Bank of England, said he would be worried if he was still in the job as sterling falls against the dollar.

He told BBC Radio 4’s Today programme: “I think I would be worried.

“The bank, and indeed the government, have indicated that they are going to take their next decision in November and publish forecasts and, so on that point, the worry is that they may have to take action a bit sooner than that.”

Liz Truss and Kwarteng accused of ‘gambling with public’s money’ as pound plummets

08:30 , Emily Atkinson

Liz Truss and Kwasi Kwarteng have been accused of recklessly gambling with the UK’s finances, as the poundslumped to an all-time low on the back of a borrwoing-fuelled tax cut spree.

Labour’s shadow chancellor Rachel Reeves accused the PM and the chancellor “behaving like two gamblers in a casino chasing a losing run”, after Mr Kwarteng hinted at tax cuts beyond the £45bn package in his mini-Budget.

One of the chancellor’s allies told The Times the sharp drop in the pound’s worth was “City boys playing fast and loose with the economy”.

Adam Forrest has more on the shadow chancellor’s stinging morning remarks here:

© Provided by The Independent

Truss and Kwarteng accused of ‘gambling with public’s money’ as pound plummets

Chancellor must set out ‘credible plans’ for economy, says Reeves

08:20 , Emily Atkinson

Shadow chancellor Rachel Reeves has demanded that her Conservative counterpart, Kwasi Kwarteng, sets out “credible plans” after the pound sank to an all-time low against the dollar.

The Labour MP told Sky News: “This is a serious situation, a cause for concern.

“The chancellor instead of doubling down on his position on Friday needs to now set out credible plans.”

© Provided by The Independent (via REUTERS)

Truss and Kwarteng ‘behaving like two gamblers in a casino chasing a losing run’

08:08 , Emily Atkinson

Shadow chancellor Rachel Reeves has accused Kwasi Kwarteng and Liz Truss of recklessly gambling with the UK’s finances.

One of the chancellor’s allies told The Times the drop in the pound’s worth is “City boys playing fast and loose with the economy”.

The Labour MP told Times Radio: “Instead of blaming everybody else, the chancellor and the prime minister, instead of behaving like two gamblers in a casino chasing a losing run, they should be mindful of the reaction not just on the financial markets but also of the public.

“The idea trickle-down economics – making those at the top richer still – will somehow filter through to everybody else has been tried before, it didn’t work then, it won’t work now.

“So, financial markets are unimpressed, the British public are unimpressed and the chancellor and the prime minister need to take note because they’re not gambling with their own money, they’re gambling with all our money, and it’s reckless and it’s irresponsible as well as being grossly unfair.”

Government ‘absolutely focused’ on growth package despite pound plunge

07:58 , Emily Atkinson

The government remains focused on delivering its growth package despite the fall in the pound, a minister has said.

Asked by Sky News about the slide, Work and Pensions secretary Chloe Smith said: “I am not going to be able to comment on particular market movements and there are various factors that always go into those.

“But the government is absolutely focused on delivering the growth package as we set out, with various ways that we will be helping both businesses and households to move ahead to growth, and, as I say, to greater opportunity.

© Provided by The Independent (Anadolu Agency via Getty Images)

“For me in particular in the Work and Pensions department, I want to then be able to help more people into more good and well-paid jobs.”

Asked about the poor polling the Tories were facing, Ms Smith added: “I have every confidence that the kind of support that the Conservatives were delighted to have in 2019 will continue to follow Liz Truss and be able to have a Conservative government in the years to come.”

‘Selling-off’ of pound to hit public services ‘already on their knees’, says shadow chancellor

07:47 , Emily Atkinson

Shadow chancellor Rachel Reeves said she is “incredibly worried” about the sell-off in the pound as she blamed chancellor Kwasi Kwarteng’s tax and spending plans.

The Labour MP told Times Radio: “I started my career as an economist at the Bank of England and, like everybody else, I’m incredibly worried about what we’ve seen both on Friday with market reactions to the chancellor’s so-called mini-budget and to the reaction overnight.”

She warned that the fall in the pound’s value will raise the cost of government debt, meaning “more and more of government spending will go on servicing the debt rather than going on public services, which are on their knees right now”.

© Provided by The Independent (REUTERS)

Ms Reeves said: “The pound is now at an all-time low against the dollar and that is not the same for other currencies, including the euro. So, there’s something going on in the UK and it’s not just dollar strength. There’s a selling-off of the pound and that was on the basis of the chancellor’s so-called mini-budget on Friday.”

Sterling falls due to ‘loss of confidence in government’, says John McDonnell

07:37 , Emily Atkinson

Former shadow chancellor John McDonnell said sterling has fallen to be almost at parity with the dollar because of a loss of confidence in the government.

The Labour MP for Hayes and Harlington, who was shadow chancellor under Jeremy Corbyn, told BBC Radio 4’s Today programme: “It’s because internationally people have – not just us – lost confidence in this government and the mini budget, I think, came as a shock to everybody … not just because it was so unfair, because it was unstable and didn’t give a way through for the economy.”

Online searches for ‘food bank near me’ soar by 250%, Labour finds

07:27 , Emily Atkinson

Online interest in food bank services has risen by 250 per cent amid the cost of living squeeze, a Labour party analysis of search trends shows.

Ahead of his conference party speech, shadow work and pensions secretary Jonathan Ashworth conducted an analysis of Google trends data which shows searches for “food bank near me” have increased by 250 per cent compared with the first week of March 2020.

The research also shows searches for “energy bill help” have reached their highest level in at least the last five years.

Meanwhile, searches for “apply for universal credit” have increased by more than 50 per cent compared with pre-pandemic.

And searches for “universal credit advance payment” have more than doubled compared with pre-pandemic.

Schools ‘on knife edge’ with finances prompting campaign to fund books and pencils

07:16 , Emily Atkinson

Headteachers have warned that schools are “on a knife edge” due to strained budgets, forcing them to launch a campaign to fund the basics such as books and pencils.

Schools are having to cut back on staff, trips and courses as soaring energy bills and unfunded pay rises eat up budgets.

Stretched finances were having a “real, genuine negative impact” on the quality of education, one primary school leader in the West Midlands said.

Zoe Tidman reports:

© Provided by The Independent

Schools ‘on knife edge’ with calls for donations to fund books and pencils

ICYMI: Sadiq Khan announces free travel for thousands of lowest paid transport workers

07:05 , Namita Singh

Thousands of the lowest paid transport workers are to travel for free across London to help with the cost of living crisis after an intervention by the Labour mayor Sadiq Khan.

The move is designed to aid those who keep Londoners on the move. Around 5,000 transport workers not previously eligible for free travel will benefit, including cleaning, catering and security staff, with the costs shouldered by City Hall.

The cost of living has soared in recent months, with the latest figures showing inflation running at almost 10 per cent.

The government has stepped in to help households cope with skyrocketing energy costs, but say the average home’s bills will still amount to £2,500 a year, a massive hike for many.

Kate Devlin reports:

© Provided by The Independent

Sadiq Khan announces free travel for thousands of lowest paid transport workers

Ex-England star Neville due at conference as Labour sets out investment plan

06:44 , Namita Singh

A Labour government would create a state-owned investment fund to back projects which could generate wealth for the nation.

Shadow chancellor Rachel Reeves will use her speech at the party’s conference in Liverpool to set out the plan, which would begin with an initial £8.3 billion investment to fund green industries.

Ms Reeves has the main speech at the gathering on Monday, but party leader Sir Keir Starmer will also appear at the conference alongside former England footballer Gary Neville.

Read the details in this report:

© Provided by The Independent

Ex-England star Neville due at conference as Labour sets out investment plan

Labour in line for a big majority while Johnson could lose his seat, poll suggests

06:34 , Namita Singh

Sir Keir Starmer could secure a comfortable 56-seat majority for Labour and unseat Boris Johnson at the next general election, according to a new poll released on the first day of the party’s annual conference in Liverpool.

The Savanta ComRes survey of more than 6,000 voters put Labour a clear 12 points ahead of the Conservatives, on 45 per cent, with Liz Truss’s party on 33 per cent.

It suggests that there has been no “Truss bounce” for the Tories following the election of their new leader at the start of September, with the Conservative Party down two points and Labour up three compared with the previous month.

And constituency-by-constituency analysis of the results showed that the Tories could shed a massive 146 MPs, including many in key red-wall seats won by Mr Johnson in 2019.

Our political editor Andrew Woodcock has more:

© Provided by The Independent

Labour in line for big majority and Boris Johnson could lose his seat, poll suggests

‘Shocking’: Labour condemns Liz Truss paying chief of staff through lobbying firm

06:24 , Namita Singh

Liz Truss is paying a lobbying company for the services of her chief of staff, the government has admitted, triggering Labour condemnation.

In an unprecedented arrangement for such a senior aide, Mark Fullbrook receives his salary as a contractor through the firm, Fullbrook Strategies, he set up in April – rather than as an employee.

Previous holders of the key No 10 role have been treated like any other special adviser by being appointed on a temporary civil service contract and paid a salary that is made public.

Angela Rayner, Labour’s deputy leader, called the admission “shocking”, saying it “raises serious questions about the new prime minister’s judgement”.

Read more in this report from our deputy political editor Rob Merrick:

© Provided by The Independent

‘Shocking’: Labour condemns Liz Truss paying chief of staff through lobbying firm

The mini-Budget is a constitutional gamble, too

06:14 , Namita Singh

The economic risks of the chancellor’s tax cuts are evident but they also leave the Scottish government with a dilemma, writes my colleague Alastair Jamieson.

© Provided by The Independent

The mini-Budget is a constitutional gamble, too

Labour pledges new ‘wealth fund’ to give taxpayers stake in green British industries

06:04 , Namita Singh

A Labour government would give taxpayers a stake in British industry with the creation of a national wealth fund that would invest billions of pounds in green businesses over the next decade, the party says.

The money created would be ploughed back into local areas, Rachel Reeves will pledge in a speech to the Labour conference in Liverpool.

As well as providing skilled jobs, she promised “wealth that will flow back into your community and onto your high street. Wealth that the British people will own a stake in”.Labour also accused the Conservatives of letting good jobs go overseas during its 12 years in power.

My colleague Kate Devlin reports:

© Provided by The Independent

Labour pledges new ‘wealth fund’ to give taxpayers stake in green British industries

Starmer resisting pressure from inside own party over reversal of tax cuts

05:54 , Namita Singh

Sir Keir Starmer will resist pressure from within his own party to reverse Liz Truss’s 1p cut for basic-rate taxpayers because of fears it could deal a fatal blow to Labour’s chances of victory at the coming election.

The Labour leader dramatically pledged to reinstate the 45p income tax rate for Britain’s wealthiest people, abolished by chancellor Kwasi Kwarteng in his mini-Budget on Friday in what Sir Keir described as a “wrong-headed” Tory policy to “allow the rich to get richer”.

But he was facing demands to go further by restoring the 20 per cent basic rate of the levy, due to be reduced to 19 per cent in April, after Mr Kwarteng brought a planned cut forward by a year.

Our political editor Andrew Woodcock reports:

© Provided by The Independent

Keir Starmer resisting pressure from inside own party over reversal of tax cuts

Sterling plunges to all-time low in scathing appraisal of Truss plan

05:44 , Namita Singh

Sterling tumbled nearly 5 per cent to an unprecedented $1.0327, extending 3.61 per cent dive from Friday, when finance minister Kwasi Kwarteng unleashed historic tax cuts, and the biggest increase in borrowing since 1972 to pay for them.

Economists and investors said prime minister Liz Truss’s government, in power for less than three weeks, was losing financial credibility by unveiling such a plan just a day after the Bank of England hiked interest rates to contain surging inflation.

© Provided by The Independent This file photo taken on 22 April 2022 shows pounds and US dollar banknotes displayed on a table in London (AFP via Getty Images)

Sterling was last down 2.7 per cent at $1.0560. Marc Chandler, chief market strategist at Bannockburn Global Forex, called the currency’s record plunge “incredible”.

“The weekend press tarred and feathered sterling with assertions of its emerging-market status,” he said.

“I don’t buy that schadenfreude. Still, there is now bound to be speculation of an emergency BOE meeting and rate hike.”

Welcome to the UK politics blog for Monday, 26 September 2022 where we provide the latest from Westminster.