The economic turmoil following the government’s mini-budget continues to dominate the papers. The Telegraph says the crisis has sparked public and private alarm among Tory backbenchers, but that Downing Street has dismissed any suggestion the chancellor will have to resign. It also quotes Gerard Lyons, an economist and informal advisor to Prime Minister Liz Truss, saying he warned both her and Chancellor Kwasi Kwarteng about the need to “make sure the markets fully understood what they were doing and that they mustn’t spook the markets”.
The Scottish Daily Express says ministers have insisted the tax cuts laid out in the mini-budget are the “right plan for economic growth” and that there will be “no U-turn”.
The UK government was facing demands to recall parliament and make an urgent statement after the Bank of England was forced to intervene to stop a mass collapse of pension funds, according to The Scotsman. The paper says the International Monetary Fund, in a highly unusual move, had earlier flagged serious concerns about the mini-budget. In a statement, the IMF said it was “closely monitoring” developments in the UK and was in touch with the authorities, urging the chancellor to “re-evaluate the tax measures”.
Government departments have been ordered to draw up “efficiency plans” to help reduce the deficit, the i reports, adding that public sector cuts are now “on the way”.
The Herald reports that The Bank of England plans to buy long-term government bonds over the next two weeks in an effort to stabilise the market and drive down the soaring cost of government borrowing.
“Squeaky fund time”, reads the headline in The Scottish Sun. The paper describes Wednesday as “the day £1,000,000,000,000 was nearly wiped off our pensions”.
The Edinburgh Evening News says the move by the Bank of England stopped the country’s pension funds going bust.
The Daily Star of Scotland carries a picture of Mr Kwarteng at a meeting with senior bankers, but with an added red nose. A speech bubble reads: “So, does ANYONE have a clue what I’m doing?”
Former chancellor and runner-up for the Tory leadership, Rishi Sunak, will not attend the Conservative Party conference, the Metro reports. Mr Sunak said repeatedly during televised debates with Ms Truss that her economic plans were “irresponsible” and risked defeat at the next election. The paper quotes a source saying Mr Sunak wants to “give Truss all the space she needs to own the moment”. It is, the paper says, “a Rish best served cold”.
The Daily Record reports that Labour and the SNP have called on the Westminster government to face the Commons and the markets as the Bank of England intervened with reserves to keep the UK economy stable. The paper says Labour leader Sir Keir Starmer called for the Commons to end its break for the party conference season as the SNP asked “where is Liz Truss?” and demanded a response to the Bank of England’s emergency intervention in the financial markets.
The National says that First Minister Nicola Sturgeon has called for Prime Minister Liz Truss to immediately recall parliament. Ms Sturgeon spoke out in the wake of emergency action from the Bank of England to mitigate the impact of the PM’s tax cuts for the highest earners, funded by increased government borrowing.
The Scottish Daily Mail leads with details of an incident where a 96-year-old woman was left “frightened and crying” after spending 40 hours on a hospital trolley before being treated. The case of the pensioner was raised during a Scottish Conservative-led debate in Holyrood on waiting times in Scotland’s NHS.
A Moray councillor has criticised the Scottish government for overturning a decision to reject a bid to build a wind farm, saying ministers are “riding roughshod over local democracy”, reports The Press and Journal. An application for a seven-turbine site near Dufftown was rejected by the local authority’s planning committee. However, a Scottish government reporter this week stepped in to approve the plans for the 623ft structures.
Dundee’s gold medal-winning heroes Eilish McColgan and Sam Hickey will be welcomed home with a City Square celebration this weekend, reports The Courier. A civic reception will be held on Sunday at Dundee City Council’s City Chambers to honour their achievements.
A man who was wearing an Iron Maiden T-shirt in an Aberdeen city centre pub may hold the key to cracking the notorious murder of a taxi driver, reports the Evening Express. The paper says the development 39 years on could finally help solve the case.
The Evening Telegraph leads on the cost of living-crisis, saying fears are growing many people will struggle to afford essentials this winter.
