Kwasi Kwarteng to calm markets with plan to reduce massive debt after tax cuts spree – exact date revealed | The Sun

KWASI Kwarteng will attempt to calm market jitters about his tax-cutting bonanza by laying out a plan to wrestle down debt.

The Chancellor will map out his blueprint to reduce massive levels of borrowing with a "Medium Term Fiscal Plan" on November 23.



Separate changes to immigration rules to allow foreign workers to plug the staff shortage will be unveiled around late October.

The Chancellor spooked financial markets after announcing the biggest tax giveaway since 1972 at last week's "mini-Budget".

His £45billion relief package – on top of a £60billion energy scheme – set trader nerves jangling and sparked a run on the pound.

Sterling today dipped as low as 1.03 against the dollar in the worst day for Britain's currency since 1971.

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In a bid to soothe concerns, the Treasury said Mr Kwarteng's November statement will flesh out his plan to reduce debt.

It will set out "details on the government’s fiscal rules, including ensuring that debt falls as a share of GDP in the medium-term."

Changes to the planning system, business regulations, childcare agricultural productivity, and digital infrastructure will come in either late October or early November.

The thorny issue of increasing the supply of foreign workers will also come then too.

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And a full-fat Budget and economic forecast will come in the spring, the Treasury said.

As the markets panicked the Bank of England issued a statement this afternoon confirming it has been monitoring developments "very closely".

It added: "The role of monetary policy is to ensure that demand does not get ahead of supply in a way that leads to more inflation over the medium term."

"As the MPC [Monetary Policy Committee] has made clear, it will make a full assessment at its next scheduled meeting of the impact on demand and inflation from the Government’s announcements, and the fall in sterling, and act
accordingly.

"The MPC will not hesitate to change interest rates by as much as needed to return inflation to the 2 per cent target sustainably in the medium term, in line with its remit."

The next MPC meeting – where interest rates may be hiked in a blow to mortgage payers – is November 3.

Stock markets around the world slid today as investors concerns over high interest rates, inflation and energy shortages continue to grow.

At 1.45pm, the FTSE 100 fell below 7,000 and the FTSE 250 fell 1.56%.

The index tracks the performance of the UK's 100 biggest companies.

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