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Under Mounting Pressure Kwasi Kwarteng Brings Forward Economic Plan To 31 October

10th October 2022

Kwasi Kwarteng will bring forward his plan for balancing the government's finances by almost a month to 31 October as he tries to reassure markets.

The fiscal statement is expected to show how the chancellor intends to pay for £43bn of tax cuts and cut debt.

At the same time an independent forecast of how the economy will perform in coming years will be published .

Originally Mr Kwarteng had said he would wait for 23 November but changed direction after his mini-budget sparked almost panic in the markets.

The Office for Budget Responsibility (OBR) to accompany the mini-budget on 23 September may have had information that the markets could have lived with. Mr Kwarteng met with OBR officials on 7 October.

The new date means Mr Kwarteng's fiscal statement will be published before the Bank of England announces its latest decision on interest rates on 3 November.

The Bank's Monetary Policy Committee (MPC) is expected to raise interest rates for the eighth time since last December with most economists forecasting a sharper rise than previous increases.

 

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