Liz Truss government 'undermines' economic institutions, says former Bank of England governor

Liz Truss government 'undermined' growth economic institutions with its borrowing-fueled tax-cutting spree, said former Bank of England Governor Sir Mark Carney.

Sir Mark - 2013 Governor to 2020 - said the mini-budget measures ” with the Bank.

“Unfortunately, having a partial budget, in these circumstances - difficult global economy, difficult position in financial markets , working against the grain with the Bank - has led to some pretty dramatic moves in the financial markets,” he told the BBC on Thursday.

Condemning the decision to go from before with the tax reduction plan Without a forecast from the Office for Budget Responsibility (OBR), Sir Mark said: "I don't understand why it s It seems unusual that you actually want to know the figures of a budget.

" After all, that's what a budget is, and understand the forecast behind those numbers... It's important that it's open to freelancers and I dare say expert review."

Asked whether austerity cuts were now necessary, Mr Carney replied: "The message from financial markets is that there is a limit to unfunded spending and unfunded tax cuts ."

The economic policies of Ms. Truss and Mr. Kwarteng have drawn strong criticism, particularly from the IMF, and the Bank of England has had to intervene without precedent to stabilize part of the financial markets.

< p>The Bank had to buy £65bn worth of government bonds - known as gilts - after the borrowing-fueled tax cuts triggered a sell-off on the market. deal that could have jeopardized £1,000,000 of pension funds.

And Treasury sources have confirmed to The Independent that cabinet ministers must be asked to find "efficiency savings" in budgets, without health or any other department being exempt.

Labour leader Sir Keir Starmer has called for parliament to be dismissed, while some Tory MPs have suggested Ms Truss should sack Mr Kwarteng.

A former minister said< em>The Independent that Mr Kwarteng could be forced into a humiliating rollback on his reduction of the 45p income tax rate for high earners.

Gerard Lyons, the right-wing economic adviser to Ms. Truss's campaign, criticized Mr. Kwarteng for failing to prepare markets for the tax measures in his mini-budget.

"Before the mini-budget, there was a need chancellor to keep the financial markets on his side - and I have warned of the need for him to do so,” he told BBC Newsnight. 'He failed to keep to his side was the financial markets.'

Andrew Sentence, a former member of the Bank's monetary policy committee, said Mr Kwart eng had not properly prepared the Bank for the fiscal measures.

The Chancellor "should have had them in his back pocket" before making his announcement last Friday, Mr Sentence told the show < em>Today from BBC Radio 4.

Bill Blain, of financial firm Shard Capital, said Today that the mini-budget was a "mistake policy of unbelievable proportions... The consequences of last Friday's policy mistake will continue."

David Gauke, former Conservative Treasury minister, said the government had caused a "crisis" that would have disastrous consequences. “The pain is yet to come, verily. The pain of higher interest rates, tougher public spending decisions has yet to be felt,” he said.

And former Tory Chancellor Ken Clarke told Times Radio that no other Conservative government in his lifetime would have made such a mistake.

"I have never known a budget to cause a financial crisis like this before...they rushed the budget, drawing on all the hubris of the leadership campaign and some of the rather crazy things that had been said,” Lord Clarke said.

But Treasury Secretary Chris Philp insisted the government would not backtrack on its proposed growth plan which led to market instability and refused to apologize for the turmoil.

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"I'm not going to get into this post-facto sweep," he told Sky News on Thursday morning. "I'm definitely not going to m Excuse having an energy intervention that protects every home...