Britain’s new finance minister, Kwasi Kwarteng, will deliver an emergency mini-budget on Sept. 23 to give more details about support to help ease the country’s cost-of-living crisis, government sources said on Thursday.
Prime Minister Liz Truss took office last week after winning the contest to lead the governing Conservative Party with a promise to immediately cut taxes and redouble efforts to promote economic growth.
Hours before the queen’s death last week, Truss outlined a plan to cap consumer energy bills for two years and funnel billions to prop up power companies.
Truss told parliament that Kwarteng would make a formal fiscal statement about the cost of her plans to support consumer and business energy bills before the end of the month.
The period of national mourning following Queen Elizabeth’s death has left ministers with little room to fit it in, making a date at the end of next week the only optionInvestors are keen to hear details about the vast cost of the plans, with estimates ranging between 100 billion and 200 billion pounds ($115-230 billion), but they may be disappointed: the Office for Budget Responsibility will not be publishing detailed forecasts next Friday, one source said.
British government bond prices have fallen sharply over the last month in anticipation of Truss’s tax and spending plans, because they imply a sharp increase in government borrowing and with it issuance of gilts.