RECAP: Nicola Sturgeon sets out economic argument for independent Scotland | Jeremy Hunt reverses almost all tax measures from mini budget
The update on Scottish independence will come an hour after Jeremy Hunt reversed almost all tax measures from the mini budget that saw Kwasi Kwarteng sacked and Liz Truss threatened early on in her premiership.
The Chancellor Jeremy Hunt has announced the Government will scrap plans to reduce the basic rate of income tax from 20% to 19% in April next year, a move that had been forecast would cost the Exchequer almost £5.3 billion in 2023-24.
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Hide AdThe First Minister will publish new independence prospectus paper at a press conference at midday to launch the third paper in the Building a New Scotland series, designed to inform the debate on Scotland’s future. ‘Building a New Scotland: A stronger economy with independence’ will set out the Scottish Government’s economic proposals for an independent Scotland.
The First Minister will take questions on the paper at a press conference an hour after Jeremy Hunt has given an update on the mini budget in an attempt to quell the markets. The Treasury said Mr Hunt will issue an emergency statement at 11am on Monday to rush forward measures that had been due to be announced on October 31 in what is known as the medium-term fiscal plan.
He will then address MPs in a statement to the House Of Commons later in the afternoon.
You can follow live updates in our live blog, that will be running throughout the day.
Nicola Sturgeon to launch third independence paper outlining economic argument for leaving UK | Jeremy Hunt set to make emergency statement on mini-budget
Here’s everything you need to know about Jeremy Hunt’s address.
A former Conservative chief whip has suggested that Jeremy Hunt could “rescue” Liz Truss’s premiership with his economic statement.
Andrew Mitchell, the MP for Sutton Coldfield, told Times Radio’s Matt Chorley: “(Liz Truss) may at this minute be on the start of the upward climb.
“She’s appointed Jeremy Hunt, he’s going to make a statement shortly… this may be the start of her rescue, if you like, as he puts into place policies that firstly will satisfy the markets.
“Remember that Jeremy Hunt and I were in the Cabinet when the OBR – the Office for Budget Responsibility – was set up by George Osborne.
“He had a very, very clear understanding of the importance of making clear to the markets that our policies are responsible. And I think that is what Jeremy Hunt will do today.”
How are the markets reacting?
The battered pound and UK government bonds rallied on Monday ahead of new Chancellor Jeremy Hunt’s emergency statement to calm the chaos in the financial markets.
Yields on 30-year and 10-year government bonds – also known as gilts – tumbled by around 8% in early trading as the Chancellor’s announcement that he will bring forward a fiscal statement soothed volatile markets.
Sterling leapt more than 1% to 1.131 US dollars at one stage after the news. Will we see similar results at the end of the day?
Jeremy Hunt is now outlining what reversals on the mini budget are going ahead.
He says all the changes are designed to give confidence and stability.
BREAKING: Jeremy Hunt has announced the Government will scrap plans to reduce the basic rate of income tax from 20% to 19% in April next year, a move that had been forecast would cost the Exchequer almost £5.3 billion in 2023-24.
“We will continue with the abolition of health and social care levy and the stamp duty change, off payroll working reforms, the new VAT-free shopping scheme for non-UK visitors and the freeze on alcohol duty rates.” says Jeremy Hunt addressing the nation ahead of a speech to MPs.
Government spending in “some areas” will be cut, the Chancellor has confirmed.
Jeremy Hunt said: “There will be more difficult decisions, I’m afraid, on both tax and spending as we deliver our commitment to get debt falling as a share of the economy over the medium term.
“All departments will need to redouble their efforts to find savings and some areas of spending will need to be cut.
“But as I promised at the weekend, our priority in making the difficult decisions that lie ahead will always be the most vulnerable and I remain extremely confident about the UK’s long-term economic prospects as we deliver our mission to go for growth.”