FlickrLiz Truss is set to hold emergency talks with the head of the UK’s financial watchdog after a week of turmoil as markets panic over her government’s tax plans.
The Prime Minister and chancellor Kwasi Kwarteng will meet with Richard Hughes, chair of the Office of Budget Responsibility, on Friday.
Scrutiny of the Government’s costing of individual tax and welfare spending measures is carried out by the OBR at each Budget.
However, Kwarteng refused to let the body to make an economic assessment of the his tax cut plans ahead of announcing them in the House of Commons last week.
The OBR made an offer to conduct a forecast for the mini-budget, but the Treasury declined.
MPs on Westminster’s Treasury Select Committee has called for the forecast to be released “immediately”, suggesting that not having one had “in some part” driven the lack of confidence in the markets.
Truss and Kwarteng have both insisted that they remain committed to their tax plans, arguing that the £45bn package of cuts is the “right plan” for the economy.
It is despite a dramatic fall in the value of the pound following the announcement by Kwarteng.
The International Monetary Fund (IMF) has also warned the Government over its tax plans.
It urged the chancellor to “re-evaluate” the proposals and risks increasing inequality.
Truss claims that her government is “taking decisive action” in the face of rising energy bills.
The energy price guarantee, announced by the Prime Minister earlier this month, will come into effect from October 1.
It will see UK households paying up to an average of £2,500 on their energy bill for the next two years.
The guarantee is automatic and applies to all households, with the Government stating that it will save the average household “at least” £1,000 a year.
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