Senior personal finance analyst, Interactive Investor
Adam, from east London, asks whether the Bank of England could lose its independence from government - after announcing earlier that it would step in to calm the bond market.
I wouldn’t think so.
The independence of the Bank of England
is a cornerstone of managing the economy.
An independent Bank of England - free
from the paws of politics - is crucial to the UK’s integrity.
The challenge for
the Bank is to maintain a high level of dynamism to respond to emerging
threats. That is being embraced.
Yesterday, it said it would "not
hesitate" to hike interest rates to curb inflation, was
"monitoring developments closely" and would make a decision on any
action in November.
What does this mean for buying food and other essentials?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Alex Groeger asks what the UK's financial situation means for the spending power of their money - including for things like food and other household essentials?
Higher interest rates typically mean savings will earn more
– although some banks and building societies may still be catching up to past
base rate rises.
However, runaway inflation continues to erode the purchasing
power of cash savings in real terms.
To put this into perspective, inflation hit
9.9% last month - over 14 times more than the average savings rate on an easy-access account over the same period.
Part of what’s impacting inflation is astronomical price
gains in energy and food. These types of inflation can be even stickier because
consumers are resigned to paying the costs because the goods are essential ones.
While inflation might not bite as hard thanks to the
government’s unprecedented multi-billion-pound cost-of-living support measures,
consumers will still need to strap in for an extended period of high inflation.
When might the economy recover?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Obi, from Bristol, asks whether there are expectations about when the economy may recover and when interest rates may fall to lower levels?
That’s the multi-billion-pound question, Obi.
At the start of
the year, the government predicted that the high inflation environment, which
has fuelled market turmoil and hindered the UK economy, would subside by the
end of 2024.
But a lot has happened in a short period of time. We have a new prime minister and a new chancellor who share a completely different economic
strategy.
The harsh reality is we are currently in uncharted waters.
What happens next is anyone’s guess, but people should consider what steps they
can take to shore up their financial position amid the uncertainty.
How will renters be affected?
Kevin Peachey
Personal finance correspondent
Several of you have been asking what higher mortgage interest rates mean for renters.
That can be quite a complex picture, but there are various
ways that renters can be affected.
Firstly, if a landlord faces higher mortgage costs, they may
want to put up the rent at the next opportunity.
Secondly, if landlords quit and sell up, tenants would have
fewer rental properties to choose from. That competition could lead to more
expensive rent for everyone.
If a renter is a wannabe first-time buyer then securing a
first mortgage is getting more expensive, so they may be renting for longer
than planned.
What are bonds and gilts?
Getty ImagesCopyright: Getty Images
The UK government needs to borrow billions of pounds, to pay for new tax cuts and schemes to limit energy price rises.
But how does the government borrow this money? By selling bonds.
This is a promise to pay money in the future. Most also require the borrower to make regular interest payments until the repayment.
UK government bonds - known as "gilts" - are appealing because they are seen as very safe, with little risk that the money won't be repaid.
Gilts are mainly bought by financial institutions, such as pension funds, investment funds, banks, insurance companies and private savers from the UK and abroad.
More than a third of all gilts sold during the pandemic were bought by the Bank of England as part of a scheme to support the economy, called quantitative easing.
This is designed to increase the amount of money in circulation in the economy in order to encourage spending.
Nick Gibbons from Lincolnshire asks how does raising interest rates lower inflation?
The long-established theory is that raising interest rates
makes it less attractive for consumers to borrow and spend money, and more
attractive to save.
The result is lower demand for goods and services, bringing
prices down.
With inflation (the rate of rising prices) running at five
times the target of 2% and set to accelerate, the Bank of England is expected
to raise rates sharply.
But it is a delicate balancing act: It does not want to slow
the economy too much. It is also why it appears at odds with the government’s
ambition to cut taxes to grow the economy.
How will interest rates affect the housing market?
Kevin Peachey
Personal finance correspondent
Nick asks how the rise in
interest rates will affect the housing market, and whether the UK is on the verge of a recession?
As far as the housing market is concerned, raising rates
makes mortgages significantly more expensive.
Experts say that is likely to reduce activity in the housing
market, as buyers and sellers wait to see what happens.
If rates stay high for a long time, mortgages could become
unaffordable for some homeowners and they would be forced to sell up.
If that
occurred in large numbers, house prices would fall.
Is now a bad time to sell my home?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Ellie, 26, has just had an offer on her home. She asks whether now is a bad time to sell.
Ultimately, your circumstances will dictate the best course
of action. Trying to time the housing market is a fool’s errand – but there is
no question that the housing (and rental) market is looking very precarious.
The various house price indices paint a picture of a strong
house market which continues to be fuelled by the demand for homes far
exceeding the number of properties for sale.
But there is a growing sentiment that rising mortgage rates
and the cost-of-living squeeze on budgets has priced many wannabe buyers out of
the market.
There is nothing you can do if a buyer pulls out of a deal.
What's been happening today so far?
We're answering your questions on what the current financial situation means for you. While we're at it, here's a recap of what's been happening today so far:
The Bank of England announced it will step in to calm markets by buying government bonds on a temporary basis
The Treasury confirmed that Chancellor Kwasi Kwarteng met investment banks this morning as he sought to reassure the City of the government's "commitment to fiscal sustainability"
Labour has joined the SNP in urging the government to recall parliament, and leader Sir Keir Starmer has accused ministers of "losing control" of the economy
The value of the pound slid following the Bank of England's announcement, now sitting at around $1.06
Mortgage deals have been withdrawn in record numbers following the increase in interest rates - and we've been answering a number of your questions about home-buying
Will more people have their home repossessed?
Kevin Peachey
Personal finance correspondent
Norah Epie asks whether more people will have their homes repossessed, given the current financial situation?
That is certainly a possibility, but it is a long, legal
process before a lender repossesses somebody’s home.
Not least, they should have tried to organise a repayment
plan if someone is falling behind with the monthly mortgage payments.
Debt advisers say anyone struggling to pay their mortgage
should talk to their lender and seek independent help. Charities such as
Citizens Advice can assist.
How do interest rates affect Help to Buy equity loans?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Steve, from Norfolk, asks what interest rates mean for people who have used Help to Buy equity loans?
Changes in interest rates won’t directly affect the terms
of the Help to Buy equity loan
scheme – but they could have an impact on the mortgage you took out for the
amount not covered by your deposit and the equity loan.
Under the scheme, there is no interest to pay for the
first five years, and if you repay the loan within that period, you will not
have to pay a penny in interest.
If you can’t afford to do so, the rate of
interest applied thereafter is 1.75% of the amount you borrowed. Crucially, the
rate of interest will go up each year in April by the Consumer Price Index plus
2%.
So, the sooner the loan is paid off, the better.
Haven't mortgage rates always fluctuated?
Kevin Peachey
Personal finance correspondent
Ian Frost says he's puzzled by the apparent panic about mortgage rates, saying they've always fluctuated and are very low compared to historic standards.
Ian is correct in saying that rates were much higher back
then – but there are other issues to consider.
The first is that mortgage rates had been at a very low
level for a decade, but are now rising quickly. That is a shock and, for many
borrowers, one they have never experienced before.
Also, when compared to our incomes, the amount people have
been borrowing (partly owing to high house prices and stagnant wages) means
even what looks like relatively small rises in rates can quickly make repayments more difficult to cover.
How will my mortgage be affected?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Julie Griffith is coming to the end of her fixed-rate mortgage and then will only have nine months until her mortgage will be paid off. She asks how the current uncertainty will affect her mortgage?
You are so close to achieving the life milestone of being
mortgage-free.
The choppy mortgage marketplace shouldn’t drastically alter your
course, but this depends on how high interest rates have risen by the end of your fixed-term deal.
If you can afford to, and if your mortgage allows, it
might be worth considering making overpayments on your mortgage which can save
you money by reducing the size of your mortgage and the amount of interest
you’ll pay overall.
If you are anxious about your predicament, it is worth
consulting a mortgage adviser.
Can my mortgage offer be withdrawn?
Kevin Peachey
Personal finance correspondent
Many of you with mortgage offers have asked whether they can be withdrawn - including Paul Ferris, from Northampton.
Brokers say that if you already have a mortgage deal agreed,
then it should – and will – be honoured.
It is first-time
buyers and remortgagers planning to put in an application who are at the sharp
end of the current situation.
The mortgage products and rates they were expecting have now
largely disappeared. When deals return, they will be more expensive.
It isn’t until the mortgage application is complete that you
are likely to have secured a specific rate. An earlier agreement-in-principle,
for example, will rarely include a specific rate and will not be binding
anyway.
It is important to stress that if you are part-way through a
fixed-rate mortgage deal, that rate cannot be changed until that deal expires.
Should I buy a house sooner rather than later?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Elizabeth Paul says she's been saving for a deposit, but asks whether, given the current situation, it would be better to try to get a mortgage sooner rather than later?
You can only do what feels right for you. No one ever
knows what the future holds or where rates will be in a few years. So, while
budgets do the dictating, if you can, try to find somewhere that will suit you
for a reasonable length of time. You might want to think about the likelihood
of changing circumstances.
As well documented, the mortgage market has been in a state
of flux this week, raising expectations of a steeper rise in interest rates,
and some lenders have responded by withdrawing their mortgages to new customers
until the uncertainty settles down.
There are still home loans available, but in many instances,
rates on deals have been pulled and replaced with higher rates on interest.
Hopefully things will settle soon – so do keep an eye out.
Your questionsanswered
Will the government give support to people with mortgages?
Kevin Peachey
Personal finance correspondent
Amid fears of mortgage prices going up, Brian Jowett asks whether the government will provide support to people like it has done for energy?
After furlough and support to pay energy bills, we have
become accustomed to the government stepping in with direct financial
assistance.
That will not happen with mortgages.
There is no way
ministers will intervene directly to help you pay your mortgage.
Instead, authorities will take the kind of action seen
today, designed at calming the nerves of investors and the markets. Lenders
like stability.
Your questionsanswered
It's time to answer your questions
You've sent us plenty of questions over the UK's turbulent financial situation and what it means for you.
Earlier today, fears over the Government's tax-cutting plans caused further market turmoil and another slide in the value of the pound.
We're now being joined on this page by the BBC's personal finance correspondent Kevin Peachey and personal finance analyst Myron Jobson.
They'll be answering your questions about how all this will affect you.
Starmer urges government to recall parliament
EPACopyright: EPA
Labour leader Sir Keir Starmer has joined SNP leader Nicola Sturgeon in saying the government should
recall parliament to address ongoing market turmoil.
"The government has clearly lost control of the economy. This is self-inflicted," Starmer tells Sky News.
"What the government needs to do now is recall parliament and abandon this budget before any more damage is done," he adds, in reference to ministers' plans to cut taxes and increase spending.
Parliament is not sitting at the moment due to party conference season.
Chancellor reiterates commitment to fiscal sustainability
BBCCopyright: BBC
The Treasury has confirmed that Chancellor Kwasi Kwarteng met investment banks this morning and reiterated the government's "commitment to fiscal sustainability".
Kwarteng met representatives from Bank of America, JP Morgan, Standard Chartered, Citi, UBS, Morgan Stanley and Bloomberg earlier in an attempt to reassure City leaders amid market turmoil following Friday’s mini-budget.
According to a read-out of the meeting, published by the Treasury, Kwarteng said he was working closely with the Governor of the Bank of England and the Office for Budget Responsibility (OBR) ahead of delivering a new fiscal plan on 23 November.
Kwarteng also discussed with attendees "how last Friday’s growth plan will expand the supply side of the economy through tax incentives and reforms, helping to deliver greater opportunities and bear down on inflation."
The statement adds that the chancellor discussed "boosting growth, generating investment, and delivering higher wages across the UK."
And Kwarteng "reiterated his view that ‘a strong UK economy has always depended on a strong financial services sector’.”
Analysis
Some Tory MPs uneasy - others still believe in the government plan
Nick Eardley
Chief political correspondent
There has been unease among Conservative MPs since Friday. The developments of the last 24 hours will make that worse.
Speaking to some this afternoon, the mood is some parts of the party is described as "despondent".
MPs say that backbenchers are keeping quiet because they feel it's impossible to defend the current situation.
Let's be clear: there are still many Conservative MPs who believe in the government strategy. They believe the UK can weather the storm.
But even some of Liz Truss's supporters think the government got its strategy wrong in the last few days.
One former cabinet minister says Kwasi Kwarteng made a mistake by not announcing supply side reforms like deregulation at the same time as tax cuts.
Live Reporting
Edited by James FitzGerald and Emma Owen
All times stated are UK
Could the Bank of England lose its independence?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Adam, from east London, asks whether the Bank of England could lose its independence from government - after announcing earlier that it would step in to calm the bond market.
I wouldn’t think so.
The independence of the Bank of England is a cornerstone of managing the economy.
An independent Bank of England - free from the paws of politics - is crucial to the UK’s integrity.
The challenge for the Bank is to maintain a high level of dynamism to respond to emerging threats. That is being embraced.
Yesterday, it said it would "not hesitate" to hike interest rates to curb inflation, was "monitoring developments closely" and would make a decision on any action in November.
Today, it took decisive action in the bond market.
What does this mean for buying food and other essentials?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Alex Groeger asks what the UK's financial situation means for the spending power of their money - including for things like food and other household essentials?
Higher interest rates typically mean savings will earn more – although some banks and building societies may still be catching up to past base rate rises.
However, runaway inflation continues to erode the purchasing power of cash savings in real terms.
To put this into perspective, inflation hit 9.9% last month - over 14 times more than the average savings rate on an easy-access account over the same period.
Part of what’s impacting inflation is astronomical price gains in energy and food. These types of inflation can be even stickier because consumers are resigned to paying the costs because the goods are essential ones.
While inflation might not bite as hard thanks to the government’s unprecedented multi-billion-pound cost-of-living support measures, consumers will still need to strap in for an extended period of high inflation.
When might the economy recover?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Obi, from Bristol, asks whether there are expectations about when the economy may recover and when interest rates may fall to lower levels?
That’s the multi-billion-pound question, Obi.
At the start of the year, the government predicted that the high inflation environment, which has fuelled market turmoil and hindered the UK economy, would subside by the end of 2024.
But a lot has happened in a short period of time. We have a new prime minister and a new chancellor who share a completely different economic strategy.
The harsh reality is we are currently in uncharted waters.
What happens next is anyone’s guess, but people should consider what steps they can take to shore up their financial position amid the uncertainty.
How will renters be affected?
Kevin Peachey
Personal finance correspondent
Several of you have been asking what higher mortgage interest rates mean for renters.
That can be quite a complex picture, but there are various ways that renters can be affected.
Firstly, if a landlord faces higher mortgage costs, they may want to put up the rent at the next opportunity.
Secondly, if landlords quit and sell up, tenants would have fewer rental properties to choose from. That competition could lead to more expensive rent for everyone.
If a renter is a wannabe first-time buyer then securing a first mortgage is getting more expensive, so they may be renting for longer than planned.
What are bonds and gilts?
The UK government needs to borrow billions of pounds, to pay for new tax cuts and schemes to limit energy price rises.
But how does the government borrow this money? By selling bonds.
This is a promise to pay money in the future. Most also require the borrower to make regular interest payments until the repayment.
UK government bonds - known as "gilts" - are appealing because they are seen as very safe, with little risk that the money won't be repaid.
Gilts are mainly bought by financial institutions, such as pension funds, investment funds, banks, insurance companies and private savers from the UK and abroad.
More than a third of all gilts sold during the pandemic were bought by the Bank of England as part of a scheme to support the economy, called quantitative easing.
This is designed to increase the amount of money in circulation in the economy in order to encourage spending.
Read more about how much money is the UK government borrowing.
How does raising interest rates lower inflation?
Kevin Peachey
Personal finance correspondent
Nick Gibbons from Lincolnshire asks how does raising interest rates lower inflation?
The long-established theory is that raising interest rates makes it less attractive for consumers to borrow and spend money, and more attractive to save.
The result is lower demand for goods and services, bringing prices down.
With inflation (the rate of rising prices) running at five times the target of 2% and set to accelerate, the Bank of England is expected to raise rates sharply.
But it is a delicate balancing act: It does not want to slow the economy too much. It is also why it appears at odds with the government’s ambition to cut taxes to grow the economy.
How will interest rates affect the housing market?
Kevin Peachey
Personal finance correspondent
Nick asks how the rise in interest rates will affect the housing market, and whether the UK is on the verge of a recession?
The Bank of England says the UK may already be in recession.
As far as the housing market is concerned, raising rates makes mortgages significantly more expensive.
Experts say that is likely to reduce activity in the housing market, as buyers and sellers wait to see what happens.
If rates stay high for a long time, mortgages could become unaffordable for some homeowners and they would be forced to sell up.
If that occurred in large numbers, house prices would fall.
Is now a bad time to sell my home?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Ellie, 26, has just had an offer on her home. She asks whether now is a bad time to sell.
Ultimately, your circumstances will dictate the best course of action. Trying to time the housing market is a fool’s errand – but there is no question that the housing (and rental) market is looking very precarious.
The various house price indices paint a picture of a strong house market which continues to be fuelled by the demand for homes far exceeding the number of properties for sale.
This has kept house prices high, with the cost of the average UK home surging to a new high £292,000 in July, according to the latest official figures.
But there is a growing sentiment that rising mortgage rates and the cost-of-living squeeze on budgets has priced many wannabe buyers out of the market.
There is nothing you can do if a buyer pulls out of a deal.
What's been happening today so far?
We're answering your questions on what the current financial situation means for you. While we're at it, here's a recap of what's been happening today so far:
Will more people have their home repossessed?
Kevin Peachey
Personal finance correspondent
Norah Epie asks whether more people will have their homes repossessed, given the current financial situation?
That is certainly a possibility, but it is a long, legal process before a lender repossesses somebody’s home.
Not least, they should have tried to organise a repayment plan if someone is falling behind with the monthly mortgage payments.
Debt advisers say anyone struggling to pay their mortgage should talk to their lender and seek independent help. Charities such as Citizens Advice can assist.
How do interest rates affect Help to Buy equity loans?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Steve, from Norfolk, asks what interest rates mean for people who have used Help to Buy equity loans?
Changes in interest rates won’t directly affect the terms of the Help to Buy equity loan scheme – but they could have an impact on the mortgage you took out for the amount not covered by your deposit and the equity loan.
Under the scheme, there is no interest to pay for the first five years, and if you repay the loan within that period, you will not have to pay a penny in interest.
If you can’t afford to do so, the rate of interest applied thereafter is 1.75% of the amount you borrowed. Crucially, the rate of interest will go up each year in April by the Consumer Price Index plus 2%.
So, the sooner the loan is paid off, the better.
Haven't mortgage rates always fluctuated?
Kevin Peachey
Personal finance correspondent
Ian Frost says he's puzzled by the apparent panic about mortgage rates, saying they've always fluctuated and are very low compared to historic standards.
Ian is correct in saying that rates were much higher back then – but there are other issues to consider.
The first is that mortgage rates had been at a very low level for a decade, but are now rising quickly. That is a shock and, for many borrowers, one they have never experienced before.
Also, when compared to our incomes, the amount people have been borrowing (partly owing to high house prices and stagnant wages) means even what looks like relatively small rises in rates can quickly make repayments more difficult to cover.
How will my mortgage be affected?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Julie Griffith is coming to the end of her fixed-rate mortgage and then will only have nine months until her mortgage will be paid off. She asks how the current uncertainty will affect her mortgage?
You are so close to achieving the life milestone of being mortgage-free.
The choppy mortgage marketplace shouldn’t drastically alter your course, but this depends on how high interest rates have risen by the end of your fixed-term deal.
If you can afford to, and if your mortgage allows, it might be worth considering making overpayments on your mortgage which can save you money by reducing the size of your mortgage and the amount of interest you’ll pay overall.
If you are anxious about your predicament, it is worth consulting a mortgage adviser.
Can my mortgage offer be withdrawn?
Kevin Peachey
Personal finance correspondent
Many of you with mortgage offers have asked whether they can be withdrawn - including Paul Ferris, from Northampton.
Brokers say that if you already have a mortgage deal agreed, then it should – and will – be honoured.
It is first-time buyers and remortgagers planning to put in an application who are at the sharp end of the current situation.
The mortgage products and rates they were expecting have now largely disappeared. When deals return, they will be more expensive.
It isn’t until the mortgage application is complete that you are likely to have secured a specific rate. An earlier agreement-in-principle, for example, will rarely include a specific rate and will not be binding anyway.
It is important to stress that if you are part-way through a fixed-rate mortgage deal, that rate cannot be changed until that deal expires.
Should I buy a house sooner rather than later?
Myron Jobson
Senior personal finance analyst, Interactive Investor
Elizabeth Paul says she's been saving for a deposit, but asks whether, given the current situation, it would be better to try to get a mortgage sooner rather than later?
You can only do what feels right for you. No one ever knows what the future holds or where rates will be in a few years. So, while budgets do the dictating, if you can, try to find somewhere that will suit you for a reasonable length of time. You might want to think about the likelihood of changing circumstances.
As well documented, the mortgage market has been in a state of flux this week, raising expectations of a steeper rise in interest rates, and some lenders have responded by withdrawing their mortgages to new customers until the uncertainty settles down.
There are still home loans available, but in many instances, rates on deals have been pulled and replaced with higher rates on interest. Hopefully things will settle soon – so do keep an eye out.
Will the government give support to people with mortgages?
Kevin Peachey
Personal finance correspondent
Amid fears of mortgage prices going up, Brian Jowett asks whether the government will provide support to people like it has done for energy?
After furlough and support to pay energy bills, we have become accustomed to the government stepping in with direct financial assistance.
That will not happen with mortgages.
There is no way ministers will intervene directly to help you pay your mortgage.
Instead, authorities will take the kind of action seen today, designed at calming the nerves of investors and the markets. Lenders like stability.
It's time to answer your questions
You've sent us plenty of questions over the UK's turbulent financial situation and what it means for you.
Earlier today, fears over the Government's tax-cutting plans caused further market turmoil and another slide in the value of the pound.
We're now being joined on this page by the BBC's personal finance correspondent Kevin Peachey and personal finance analyst Myron Jobson.
They'll be answering your questions about how all this will affect you.
Starmer urges government to recall parliament
Labour leader Sir Keir Starmer has joined SNP leader Nicola Sturgeon in saying the government should recall parliament to address ongoing market turmoil.
"The government has clearly lost control of the economy. This is self-inflicted," Starmer tells Sky News.
"What the government needs to do now is recall parliament and abandon this budget before any more damage is done," he adds, in reference to ministers' plans to cut taxes and increase spending.
Parliament is not sitting at the moment due to party conference season.
Chancellor reiterates commitment to fiscal sustainability
The Treasury has confirmed that Chancellor Kwasi Kwarteng met investment banks this morning and reiterated the government's "commitment to fiscal sustainability".
Kwarteng met representatives from Bank of America, JP Morgan, Standard Chartered, Citi, UBS, Morgan Stanley and Bloomberg earlier in an attempt to reassure City leaders amid market turmoil following Friday’s mini-budget.
According to a read-out of the meeting, published by the Treasury, Kwarteng said he was working closely with the Governor of the Bank of England and the Office for Budget Responsibility (OBR) ahead of delivering a new fiscal plan on 23 November.
Kwarteng also discussed with attendees "how last Friday’s growth plan will expand the supply side of the economy through tax incentives and reforms, helping to deliver greater opportunities and bear down on inflation."
The statement adds that the chancellor discussed "boosting growth, generating investment, and delivering higher wages across the UK."
And Kwarteng "reiterated his view that ‘a strong UK economy has always depended on a strong financial services sector’.”
Some Tory MPs uneasy - others still believe in the government plan
Nick Eardley
Chief political correspondent
There has been unease among Conservative MPs since Friday. The developments of the last 24 hours will make that worse.
Speaking to some this afternoon, the mood is some parts of the party is described as "despondent".
MPs say that backbenchers are keeping quiet because they feel it's impossible to defend the current situation.
Let's be clear: there are still many Conservative MPs who believe in the government strategy. They believe the UK can weather the storm.
But even some of Liz Truss's supporters think the government got its strategy wrong in the last few days.
One former cabinet minister says Kwasi Kwarteng made a mistake by not announcing supply side reforms like deregulation at the same time as tax cuts.