Friday morning news briefing: What to expect from today's mini-Budget

·6-min read
Morning briefing
Morning briefing

Kwasi Kwarteng will this morning set out the new government's approach to the economy, pledging to "turn the vicious cycle of stagnation into a virtuous cycle of growth".

Ahead of his mini-Budget, the Chancellor issued a warning to the Governor of the Bank of England.

He told Andrew Bailey that claims that near double-digit inflation was mainly driven by the war in Ukraine were less credible now that the Government had taken action to hold down energy bills – a swipe at the Bank's record on controlling inflation.

The letter to Mr Bailey marked a change in tone compared with ex-chancellor Rishi Sunak.

Mr Kwarteng's "unashamedly pro-growth" stance has led to speculation of sweeping tax cuts in today's mini-Budget. Read what is expected to be announced.

As economics editor Szu Ping Chan reports, Mr Kwarteng is expected to announce two "rabbits out the hat" that have not previously been reported.

The statement is due to begin at around 9.30am. Follow live updates with James Warrington.

Meanwhile, experts have warned that house sales could soon plunge as mortgages look to become the most unaffordable on record since 1990.

The Bank of England increased the Bank Rate by 0.5pc to 2.25pc yesterday, the highest level since 2008.

Melissa Lawford reports on what rocketing interest rates mean for your house price and Rachel Mortimer explains how you can cut your mortgage costs.

And Ambrose Evans-Pritchard argues that it is time to batten down the hatches as "overzealous central banks are making another horrible mistake".

Your View: Earlier this week, we asked if you think Liz Truss is on the right track to steer the country through the cost-of-living crisis. These are some of the best responses from your fellow readers.

Rayner reveals what Commons note said about Queen

The mysterious notes passed urgently between MPs in the Commons offered the first public indication that something was amiss.

Prime Minister Liz Truss, who had just delivered an energy statement, was handed a note folded into a square. A similar note was passed to Angela Rayner, Sir Keir Starmer's deputy.

Shortly afterwards, Buckingham Palace announced that the Queen was unwell. Senior members of the Royal family dashed to her side. Her Majesty died a few hours later.

Ms Rayner has now revealed the contents of the note she passed to Sir Keir and the dilemma she faced as she contemplated how to interrupt him in view of TV cameras.

Meanwhile, Labour members are being urged to sing the national anthem at the party's conference this weekend.

Can you crack this GCHQ puzzle for children?

You do not need to be top of the class to be a spy, the GCHQ chief has said, as the agency publishes its first puzzle book for children.

Sir Jeremy Fleming said it was a "myth" that everyone at Britain's cyber spy agency is good at puzzles.

Marking the release of GCHQ's first puzzle book aimed specifically at children, the agency has released a bonus brain-teaser that took more than a century to crack. Try the puzzle for children.

Daily dose of Matt

Matt sees the funny side of fracking in today's cartoon and see our latest political cartoon from Davey.

Also in the news: This morning's other headlines

'Return to dark ages' | The entire rail network will come to a standstill next month with passengers facing three strikes in the space of a week. About 40,000 members of the Rail, Maritime and Transport Union will walk out on Oct 8, capping a week of misery on the railways. Action by Aslef was already confirmed for two other days. Dominic Penna reports how the combined action is expected to cause severe disruption.

Around the world: 'Invisible war' finally hits home

Until this week, Vladimir Putin's Ukraine war had been almost invisible to most Muscovites. That illusion came crashing down in the wake of the Russian leader's speech announcing partial mobilisation. For millions who had ignored the conflict, the war in Ukraine suddenly went from near-invisible to urgent and personal. Read our special correspondent's dispatch from Moscow. It comes as four areas of Ukraine controlled by pro-Moscow forces are preparing to hold referendums today on joining Russia, a move widely condemned as illegitimate. Follow the latest.

Comment and analysis

Sport briefing: Why Southgate is 'risking reputation'

Gareth Southgate admitted he was set to put his England reputation on the line by standing by Manchester United's out-of-favour captain Harry Maguire in Milan tonight. Maguire is expected to start in a back three against Italy in the Nations League fixture, which is England's penultimate game before the World Cup. Chief football correspondent Jason Burt explains how Southgate must restore belief. In tennis, Roger Federer is braced for a "last dance" with Rafael Nadal at the Laver Cup.

Editor's choice

  1. Elizabeth II, our Marilyn Monroe | How the late Queen's image will symbolise an era

  2. Health watchdog | The hospital inspector sacked and vilified for doing his job

  3. How to keep the heating off until November | Cheap and easy ways to lower your bills

Business briefing: BT staff told to return to the office

BT is demanding staff return to the office three days a week as it is "fundamental to the success of the business", in the latest sign of a boardroom backlash against working from home. Chief executive Philip Jansen told thousands of staff it would be shifting to a "smart working" approach. Those who do not want to accept the new terms could reportedly face disciplinary action. Meanwhile, cask ales are becoming rarer at Britain's pubs as the cost-of-living crisis prompts landlords to opt for longer-lasting kegs of craft beer, lager and ciders instead.

Gardening: Get a tropical autumn lift

Cannas in pots are perfect for adding a tropical look to gardens and are increasingly winter-hardy. These plants give gardens a lift in the late season when many others are starting to look a little haggard. Read on for tips on the best, simple way to grow cannas this autumn.

Tonight's dinner

Mussels with apples, cider and bacon | This dish is quick and delicious, but Eleanor Steafel particularly enjoys it because the preparation takes a little work.

And finally... for this morning's downtime

Travel inspiration | Is it possible to visit harder-to-reach places in Britain, like Cornwall and the Scottish Highlands, via train, boat or on foot? To mark World Car-Free Day, Emma Beaumont shares the UK's remote corners you can still reach without your own vehicle.

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