Liz Truss And Kwasi Kwarteng Have No Plans To Comment On Plunging Pound, Says No.10

Downing Street said the government was committed to "remaining fiscally responsible".
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Liz Truss and Kwasi Kwarteng have no plans to comment on the reaction of the markets to their mini-budget, Downing Street has said.

On Monday the pound plunged to an all-time low against the US dollar.

Labour has accused the new government of “gambling all of our money” and “fanning the flames” of the falling pound.

Last week the chancellor unveiled the biggest tax cuts in 50 years - including axing the top rate paid by the wealthy.

The dramatic move will be funded by a sharp rise in government borrowing.

Sterling has hit its lowest level against the dollar since decimalisation in 1971, falling by more than 4% to just 1.03 dollars in early Asia trading before it regained some ground to about 1.07 dollars early on Monday.

But the prime minister’s spokesperson said neither Truss or the chancellor were expected to issue any reaction.

“I think that the chancellor has made clear that he doesn’t comment on the movements around the market and that goes the same for the prime minister,” the spokesperson said.

“The UK with the second lowest debt-to-GDP ratio in the G7 is investing in its future.

“That’s through a growth plan while remaining fiscally responsible and committed to driving down debt in the medium term.

They added: “The growth plan, as you know, includes fundamental supply side reforms to deliver higher and sustainable growth for the long term, and that is our focus.”

The euro also hit a fresh 20-year low against the dollar amid recession and energy security fears ahead of what is expected to be a painful winter across Europe as the war in Ukraine shows no sign of ending.

Experts warned the pound’s plunge towards parity with the dollar will send the cost of goods soaring even higher, potentially worsening the cost-of-living crisis, while it also means it will be more expensive for the government to borrow money.

There are concerns that inflation will remain high and force the Bank of England to raise interest rates even further.

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