What’s an old Etonian with a “brilliant” academic mind, variously described as: arrogant; tin-eared and, with only a few of week’s experience, a bit naive, to do when the debt collectors call? Especially when he has already crashed the pound and pushed up interest rates for everyone.
It increasingly looks like Plan A was to bounce the cabinet, the treasury and us with a wing and a prayer assumption that tax cuts would instantly be self-funding by immediately creating 2.5% growth. No questions asked nor needed for such obvious genius.
Except the experienced, real world, orthodox debt collectors called his bluff.
So what is his Plan B?
Austerity on a scale that will make Osborne look generous? – Owl
(Plan A looks a bit thin to Owl)
OBR forecasts likely to show £60bn-£70bn hole after Kwarteng’s mini-budget
Richard Partington www.theguardian.com (extract)
Kwasi Kwarteng has been handed independent forecasts on the state of the UK finances that are expected to show a hole of more than £60bn left by his sweeping tax cuts and a sharply slowing growth outlook.
At the end of a turbulent week for Liz Truss’s government, the chancellor was on Friday handed the initial predictions for the economy and public finances by the Office for Budget Responsibility (OBR) which are likely to paint a gloomy picture.
Sir Charlie Bean, a ex-member of the independent watchdog and a former Bank of England deputy governor, said the document would probably show a large shortfall for the exchequer.
“It will be in the order of £60bn to £70bn relative to its previous forecasts,” he said, adding that Kwarteng would face three options: further U-turns on his tax-cutting plans, deep cuts to public spending, or risking the ire of already rattled financial markets by substantially adding to the national debt.