A TREASURY minister last night insisted the Government would not U-turn on the £45billion of tax cuts announced in the mini Budget.
Andrew Griffith, financial secretary to the Treasury, refused to accept that the fall in the value of the pound and the surge in the cost of Government borrowing was because investors had lost confidence.
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Asked if the Government was to blame for the turmoil on the markets, he told Sky News: “We are seeing the same impact of Putin’s war in Ukraine cascading through things like the cost of energy, some of the supply side implications of that.
“That’s impacting every major economy where you’re seeing interest rates going up as well.”
When pressed on whether or not the UK economy was suffering worse than other countries, he said: “Every major economy is dealing with exactly these issues.
“We think they are the right plans because those plans make our economy competitive.
“Get on and deliver that plan. That’s what I, the Chancellor and my colleagues in government are focused on, is getting on and delivering that growth.
“That is what is going to allow consumers to benefit.
“In the meantime, we are protecting every household and every business from the biggest macro shock out there at the moment, which is the cost of energy.”
But one backbencher said: “In essence, what happened last week should be deleted from the record.
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“They need to start again.”
Another Tory MP questioned PM Liz Truss’s long-term future in No 10.
He said: “If I were her, I wouldn’t be inviting people to Downing Street for Christmas lunch.”
But others called for calm. One cabinet minister said: “People need to hold their nerve.
“Markets move, especially with big change.
“But change was and is needed.”
