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
New Chancellor Jeremy Hunt has said his tax cut reversals will raise some £32 billion a year as part of efforts to get the public finances back on track.
In an emergency statement, he said: “The measures I’ve announced today will raise every year around £32 billion.”
A Treasury-led review will take place into how people are helped with energy bills from April next year.
The Government’s main objective will be ensuring “stability”, the Chancellor has said.
Indicating that some Government spending would have to be cut, Jeremy Hunt said: “The most important objective for our country right now is stability.
“Governments cannot eliminate volatility in markets but they can play their part and we will do so, because instability affects the prices of things in shops, the cost of mortgages and the values of pensions.”
The Market latest
The pound has strengthened and UK government bonds have rallied further as Jeremy Hunt announced plans to reverse key policies in the former Chancellor’s mini budget.
Sterling rebounded by more than 1.2% to 1.139 against the US dollar shortly after Mr Hunt gave his emergency statement to calm the financial markets.
Yields on 30-year government bonds, or gilts, eased back further by around 10%, as the new Chancellor set out plans to shave off billions of Government debt.
The interest on long-dated bonds hit a low of around 4.32% shortly after the first announcement.
Nicola Sturgeon has said “thank goodness we didn’t act so rashly” after Jeremy Hunt announced most of his predecessor’s tax cuts were being scrapped.
The First Minister tweeted in response to the new Chancellor’s emergency announcement on Monday morning.
Nicola Sturgeon has said it is “glaringly obvious now that the UK does not offer economic strength and stability, or financial security.”
She says that rising mortgage rates and pensions funds on the brink of collapse have been created by a government that Scotland did not vote for.