Newspaper headlines: Bank 'fails to calm market' as 'pound Kwar-tanks'

Prime Minister Liz Truss and Chancellor Kwasi Kwarteng features on a number of front pages after markets reacted to last week's tax cuts

Tuesday's front pages are dominated by the turmoil in the markets on Monday, which saw the pound touch an all-time low against the dollar.

"Out of Control" is the headline in the Mirror, next to a picture of Liz Truss and Kwasi Kwarteng. The paper says the chancellor's tax cuts plunged the markets into chaos and left millions of households facing further financial misery.

The Telegraph has a front page picture of Mr Kwarteng and the Bank of England governor, Andrew Bailey, with a graph between them showing the fall in the value of the pound yesterday. The paper says "spooked lenders" are ditching new mortgages. One Conservative MP tells the paper his backbench colleagues are "petrified" at the prospect of interest rate rises.

The i reports on the decision by several mortgage lenders - including Halifax, Virgin Money, and Skipton - to temporarily stop some or all new loans, and says others are expected to follow suit. It says there are predictions of 5% deals by next week.

The Times highlights a warning from one Conservative minister that the party faces a "world of pain" if voters blame them for soaring mortgage costs. The paper also carries the results of a YouGov poll giving Labour a 17-point lead, its biggest in more than two decades. In an editorial it says the government and the Bank of England face an urgent challenge to restore confidence in British economic policymaking.

Under the headline, "City slickers betting against UK PLC," the Mail says speculators profiting from the plunging pound "sparked fury". The paper quotes senior Tories criticising traders for "trying to make money out of bad news" and warning against "talking the pound down".

The Guardian says the government is struggling to prevent a full-scale loss of financial market confidence in its economic strategy. It says markets now believe that "talking tough will not be enough and that official borrowing costs will need to rise sharply to reverse sterling's slide - a squeeze that would wipe out any boost from the chancellor's growth push and lead to soaring mortgage rates for millions of homeowners". In an editorial, it says the mess was "predictable" and largely down to Mr Kwarteng's refusal to explain what he was doing.

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The Financial Times quotes the chief economist of the Bank of Singapore warning that the UK could enter a spiral usually seen in emerging markets where "policymakers struggle to reassert credibility". Its editorial says the market instability is confirmation of "the recklessness of the government's strategy of funding historic tax cuts and energy subsidies through debt, backed only by a promise of improved growth".

"The pound Kwar-tanks," reads the headline in the Metro. The paper notes it wasn't just the dollar that the pound fell against on Monday, but also the euro, the Japanese yen, and even the Russian ruble.

Finally, the Star's front page features a picture of the chancellor with a clown's nose. "Honey, I shrunk the quids", reads the headline.