Bank of England attacks government’s economic failure ahead of ‘austerity budget’

’It’s not a good story,’ Andrew Bailey tells MPs – painting backdrop to Jeremy Hunt’s £60bn ‘black hole’

The Bank of England has criticised the disastrous mini-Budget and a failure to spark economic growth since the Covid pandemic, as Jeremy Hunt prepares to unveil huge new spending cuts and tax hikes.

Ahead of Thursday’s landmark autumn statement – and after inflation hit a shock 41-year high of 11.1 per cent – its governor Andrew Bailey hit out at Britain’s “damaged reputation”, which he said had worsened the crisis.

Chancellor Jeremy Hunt will warn the public that Britain must “face into the storm” on Thursday as he unveils a £54bn package of tax hikes and spending cuts.