It is three weeks since the now former chancellor Kwasi Kwarteng delivered his not-a-budget budget, a package of £45bn of unfunded tax cuts. To say the so-called growth plan spooked investors in the financial markets would be an understatement; the response was a damning indictment of economic policies that were at the heart of Liz Truss’s pitch to be Conservative leader and prime minister. The shadow climate change secretary, Ed Miliband, said Kwarteng’s sacking and expected U-turns on the mini-budget were not just the death of a policy but “the death of an ideology”. Here we number-crunch the political and economic damage caused by three weeks of chaos.
28% The latest YouGov/Times voting intention poll published on Thursday shows Labour maintaining the enormous lead (28%) they opened up over the Conservatives last month. The figures show the Conservatives on 23% of the vote (+1 from previous survey on 6-7 October) to Labour’s 51% (-1). -47% Liz Truss’s personal ratings are now even worse than those recorded for Boris Johnson at the height of the Partygate scandal, according to an Observer poll. A rating of -47 is now the worst ever recorded for a prime minister in an Opinium poll. It is a worse rating than that recorded for Johnson during Partygate and Theresa May in the weeks before her resignation. £19.3bn The Bank of England set aside £65bn for an emergency bond-buying programme to stem the crisis triggered by Truss and Kwarteng’s growth plan, which put entire pension funds at risk of insolvency. As of Friday, when the programme was due to end, the Bank had spent £19.3bn.
6826.15 The FTSE 100 closed at 6826.15 on Wednesday, its lowest level in the last 12 months. Since the mini-budget the index has fallen, risen and fallen again, underlining the nerves of investors.
4.3% The yields on gilts (UK government bonds) surged after Kwarteng’s announcement in September. The yield on the UK’s benchmark 10-year gilt hit about 4.3% in late September and has fallen and risen since. Rising bond yields suggest a lack of willingness among investors to own the debt, as buyers demand a lower price to buy them.
1.03 The pound fell to a record low of 1.03 against the US dollar on 26 September after Kwarteng doubled down on his £45bn package of tax cuts by pledging on live TV to go further. The pound has since risen, fallen and risen again, underlining the wavering faith investors have in the UK economy. 3,674 The distance in miles from Washington DC to London, as flown by Kwasi Kwarteng so he could be sacked in person.