UK Prime Minister Liz Truss on Wednesday turned to her cap on energy prices to dismiss a barrage of criticism from MPs over the fall-out from her government's tax-slashing mini-budget.
In her first appearance in the House of Commons since the British economy was plunged into crisis after the high-borrowing bonanza, Ms Truss was accused of "ducking responsibility" by opposition leader Sir Keir Starmer.
She repeatedly emphasised the financial help that her administration has offered to households facing rising energy costs, holding bills at £2,500 ($2,760) per year, saying it formed the major part of the controversial mini-budget.
Ms Truss also vowed to stick by her pledge not to reduce public spending.
She reiterated her confidence in her policy to place a cap on gas and electricity bills for households.
She said the Conservative government had "taken decisive action to make sure that people are not facing energy bills of £6,000".
Mr Starmer told the House that Ms Truss was "avoiding the question, ducking responsibility, lost in denial".
"No wonder investors have no confidence in her government," he said.
Ms Truss said in criticising the mini-budget, Mr Starmer was “opposing the very package that we brought in, an energy price guarantee”.
“That was the major part of the mini-budget that we announced,” she said.
She also pointed out that the opposition leader has so far declined to say whether he supports the energy price cap for two years. Before Ms Truss announced the cap in September, Labour had called for energy bills to be frozen at £1,971 a year for six months.
Defending her plans, she said her government is helping people cope with rising bills by lowering stamp duty, introducing an energy price cap and keeping taxes low.
Mr Starmer shot back by accusing her of trying to hide the damage the mini-budget had inflicted on the economy. “Everyone can see what has happened,” he said. “The Tories went on a borrowing spree, sending mortgage rates through the roof ― they are skyrocketing by £500 a month.”
Ms Truss insisted she would not cut public spending to balance the books as economists and financial markets continued to express doubt over the effectiveness of her approach.
The prime minister said she was "absolutely” not planning public spending reductions, but insisted taxpayers’ money would be used well.
The cost of government borrowing increased on Wednesday while sterling fell against the euro and dollar in the latest signs of market turbulence.
Business Secretary Jacob Rees-Mogg suggested the Bank of England’s failure to raise interest rates in line with the US was driving the turmoil in financial markets rather than Kwasi Kwarteng’s mini-budget.
Asked if Ms Truss believed Andrew Bailey was doing a good job as governor of the central bank, her official spokesman said: “Yes. You have seen the Bank of England make a number of interventions recently.
“There are complex global issues at play which do feed into this.”
While Ms Truss was appearing in the Commons, the Treasury Select Committee was taking evidence from economists.
Torsten Bell, of the Resolution Foundation, told MPs that Mr Kwarteng would have to perform a further U-turn on his plan to cut taxes if he wanted to restore the government’s economic credibility.
“Given where we are, in a very serious situation, I don’t think there is a credible, plausible package that’s going to work now on the 31st [of October] that doesn’t involve U-turning on more of these," he said.
“Because markets are going to need to see the government saying ‘I’ve changed course’.”
He suggested that reversing the plan to abolish the planned corporation tax rises would be the “easiest to do” among the major announcements, along with some of the more minor measures that Mr Kwarteng had set out “which we should obviously not be going ahead with”.
Ms Truss's appearance at Prime Minister’s Questions came less than three weeks after the economy was plunged into crisis by Mr Kwarteng’s tax-slashing, high-borrowing mini-budget. The package, which included £45 billion worth of tax cuts, caused the pound to drop to a 37-year low and caused chaos in financial markets.
Although the government later backtracked on its pledge to cut the 45p tax rate for higher earners, the damage was done. Such was the unpopularity of the policy that it helped Labour to open up a 17-point lead over the ruling Conservatives in the polls.
The Bank of England was forced to make an emergency intervention to restore order by announcing it would buy long-dated UK government bonds, known as gilts. There was further humiliation for the Truss administration this week when the central bank again said it would buy up government debt.
Ms Truss has repeatedly refused to cave in to pressure from Labour to introduce a windfall tax on the profits of oil and gas companies to partly fund support for UK households in the grip of a cost-of-living crisis.
She is considering raising welfare payments in line with earnings rather than inflation, which would hit the poorest households hardest. It would mean benefits would increase by 5.5 per cent rather than about 10 per cent, according to recent official data, saving about £5bn.
But the prime minister, who succeeded Boris Johnson last month, is reportedly considering a U-turn in an attempt to avoid a mutiny by Conservative MPs.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
UAE currency: the story behind the money in your pockets
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%3Cp%3EDirector%3A%20Jim%20Strouse%3C%2Fp%3E%0A%3Cp%3EStars%3A%20Priyanka%20Chopra%20Jonas%2C%20Sam%20Heughan%2C%20Celine%20Dion%3C%2Fp%3E%0A%3Cp%3ERating%3A%202%2F5%3C%2Fp%3E%0A
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
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
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A Cat, A Man, and Two Women
Junichiro Tamizaki
Translated by Paul McCarthy
Daunt Books
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Company profile
Company: Verity
Date started: May 2021
Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif
Based: Dubai
Sector: FinTech
Size: four team members
Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000
Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors
UAE currency: the story behind the money in your pockets
The specS: 2018 Toyota Camry
Price: base / as tested: Dh91,000 / Dh114,000
Engine: 3.5-litre V6
Gearbox: Eight-speed automatic
Power: 298hp @ 6,600rpm
Torque: 356Nm @ 4,700rpm
Fuel economy, combined: 7.0L / 100km
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Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
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The specs: 2018 Volkswagen Teramont
Price, base / as tested Dh137,000 / Dh189,950
Engine 3.6-litre V6
Gearbox Eight-speed automatic
Power 280hp @ 6,200rpm
Torque 360Nm @ 2,750rpm
Fuel economy, combined 11.7L / 100km
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
Ronaldo's record at Man Utd
Seasons 2003/04 - 2008/09
Appearances 230
Goals 115
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Sholto Byrnes on Myanmar politics
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