LONDON — Chancellor Kwasi Kwarteng will publish the government’s economic plans earlier than expected after pressure from Conservative MPs to quell market jitters.
In a letter to commons treasury committee chairman Mel Stride, published Monday, Kwarteng said the government will now release an economic and fiscal forecast alongside its medium-term fiscal plan on October 31, after initially planning to do so November 23.
The bumped-up date follows market turmoil in September after Kwarteng announced a so-called mini-budget — including a plan for the biggest tax cuts the U.K. has seen for 50 years — without details on how it will be paid for or the usual scrutiny from watchdog the Office for Budget Responsibility (OBR).
His initial proposals sent the value of the pound into a tailspin and saw investors sell off U.K. government debt, with Kwarteng later forced to abandon plans to lower taxes for Britain’s top earners.
The government will publish “an in-depth assessment of the economy and public finances” conducted by the OBR, Kwarteng wrote. He expects to make “further growth measure announcements throughout October.”
“Having pressed so hard on this I strongly welcome [the] decision,” said Stride.
If the government’s plans and watchdog analysis “lands well with markets,” the treasury committee chairman said, it could lead the Bank of England to make lower-than-expected interest rate rises when its monetary policy group meets on November 3 — a move Stride said would be “critical to millions of mortgage holders.”
