Kwasi Kwarteng U-turns on U-turn over date of fiscal plan

Government economic policy was today plunged deeper into chaos after Liz Truss and Kwasi Kwarteng U-turned on a plan to calm markets by bringing forward a crucial statement by the chancellor.

The media was briefed late on Monday that Kwarteng’s medium-term fiscal plan would take place earlier than the planned date of 23 November, after warnings from MPs that the seven-week delay would fuel market jitters and could lead to a higher rise in interest rates.

Markets rose and the pound hit a two-week high on the back of a report in the Financial Times that the statement – and the Office for Budget Responsibility’s judgement on the impact of his measures – would instead take place in October, ahead of the 3 November meeting of the Bank of England’s rate-setting committee.