British Prime Minister Liz Truss is refusing to back down on her tax-cutting mini-budget despite economic turmoil, saying on Thursday it was the “right plan”.
In her first public comments since Chancellor Kwasi Kwarteng unveiled the proposals last Friday, which have led to almost a week of financial chaos, Ms Truss dismissed concerns.
After remaining silent this week, on Thursday she undertook a media blitz which included 15 quick-fire interviews with BBC local radio stations across the country.
Ms Truss told BBC Radio Leeds “we were here” because of Russia’s war against Ukraine, which pushed up energy prices.
“Currencies are under pressure around the world,” she said. “And that’s why it’s so important that this government took urgent action."
The mini-budget, or so-called “fiscal event” on Friday, represented the biggest tax cuts in 50 years.
Its announcement unleashed turmoil in the markets, with the pound sinking to its lowest level against the dollar to only $1.03 on Monday.
Two days later, the Bank of England was forced to intervene to buy up gilts — UK government debt in sterling ― after it “warned of a material risk to UK financial stability”.
The bank was forced to act after plunging markets for UK debt sent borrowing costs soaring and forced pension funds to dump their assets because they did not have enough short-term cash to honour some contracts.
The turbulence continued into Thursday, with sterling sliding again in early deals to as low as $1.0763. It later recovered some ground, rising to $1.0857 by 1.30pm UK time.
The prime minister said the government was working “very closely” with the Bank of England, but that it was important the central bank was independent.
“We are facing very, very difficult economic times," she said. "We are facing that on a global level. I talked to a lot of my overseas counterparts, about issues like energy, about making sure we are dealing with the global economy.
“But the important thing is the British government acted to make sure people were protected from these high energy costs, to make sure we are getting the economy going."
The growth will not come through “overnight”, she said. “But what’s important is we are putting this country on a better trajectory for the long term.”
Ms Truss, who will face Tory members next week at the Conservative Party conference, also received questions from members of the public during the round of radio interviews.
She was asked questions such as: "What on earth were you thinking?", "How can we ever trust the Conservatives with our economy again?" and "Are you ashamed of what you've done?".
Ms Truss replied: "I think we have to remember what situation this country was facing.
"We were going into the winter with people expected to face fuel bills of up to £6,000 ($6,522), huge rates of inflation, slowing economic growth.
"And what we've done is we've taken action to make sure that from this weekend, people won't be paying a typical fuel bill of more than £2,500."
She told another presenter the government “had to take urgent action to get our economy growing, get Britain moving and also deal with inflation”.
“And, of course, that means taking controversial and difficult decisions,” she said.
“But I am prepared to do that as prime minister, because what is important to me is that we get our economy moving and we make sure people are able to get through this winter. We are prepared to do what it takes to make that happen.”
She said it was "simply not true" when asked by BBC Radio Nottingham whether her mini-budget was a "reverse Robin Hood" that disproportionately benefited the most wealthy.
She said: "People were facing unaffordable energy bills and the package we presented in the energy statement, but also on the mini-budget last week - the biggest part of that is the help on energy."
She was also questioned about local issues, including fracking, which she said would only take place where a community has consented.
Asked about the replacement of the dilapidated Queen Elizabeth Hospital in King's Lynn, in her own constituency, she said: "I hope the new Health Secretary, Therese Coffey, will visit soon to see the situation and make sure that action is taken," she said.
"She will be the one that delivers but I'm not making promises on her behalf."
At one point she was rendered speechless by a question about the impact of her tax-cutting agenda on people's mortgages across the UK.
BBC Radio Stoke's presenter John Acres pointed out that homeowners' mortgages fees were rising by more than the amount they would save from the energy support.
"I don't think anybody is arguing that we shouldn't have acted on energy," the prime minister replied after a silence.
Meanwhile, former Bank of England governor Sir Mark Carney warned the government on Thursday against undermining the country’s economic institutions. He said it was “working at cross purposes with the bank” with its mini-budget.
Sir Mark said the government also made the mistake of leaving out the “real measures”. He said these would drive the acceleration of growth in the economy, which was necessary for the numbers to add up.
“And so that leads to one last uncertainty and concern, which is maybe the way the numbers are going to add up is through spending cuts, as yet unspecified,” he said. “What would those be and how are those going to be put in place?”
“Unfortunately, having a partial budget in these circumstances — a tough global economy, tough financial market position, working at cross purposes with the bank — has led to quite dramatic moves in financial markets.”
The International Monetary Fund said earlier this week it was “closely monitoring” developments. It also urged Mr Kwarteng to “re-evaluate” his tax measures, saying, in an extraordinary statement, that the plans would increase inequality.
The mini-budget has also led to infighting among Conservatives, with some calling for Mr Kwarteng to go.
However, Chris Philp, Britain's chief secretary to the Treasury, said he disagreed with concerns raised by the IMF.
“I saw the IMF comments. I respectfully disagree,” he told Sky News.
Mr Philp also said the government would stick to its plan to hold a bigger fiscal announcement on November 23.
Meanwhile, World Bank president David Malpass on Wednesday said that it could take years for global energy production to diversify away from Russia after its invasion of Ukraine. This would prolong the risk of "stagflation" ― a period of low growth and high inflation ― he said.
In a speech at Stanford University in California, Mr Malpass said there was an increased likelihood of a recession in Europe. He said China's growth was slowing sharply and US economic output had contracted in the first half of the year.
Those developments would have grave consequences for developing countries, Mr Malpass said. He cited what he called “consequential” and “worsening” challenges facing development.
UAE currency: the story behind the money in your pockets
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
AUSTRALIA SQUAD
Aaron Finch (captain), Ashton Agar, Alex Carey, Pat Cummins, Glenn Maxwell, Ben McDermott, Kane Richardson, Steve Smith, Billy Stanlake, Mitchell Starc, Ashton Turner, Andrew Tye, David Warner, Adam Zampa
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
88 Video's most popular rentals
Avengers 3: Infinity War: an American superhero film released in 2018 and based on the Marvel Comics story.
Sholay: a 1975 Indian action-adventure film. It follows the adventures of two criminals hired by police to catch a vagabond. The film was panned on release but is now considered a classic.
Lucifer: is a 2019 Malayalam-language action film. It dives into the gritty world of Kerala’s politics and has become one of the highest-grossing Malayalam films of all time.
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
First-round leaderbaord
-5 C Conners (Can)
-3 B Koepka (US), K Bradley (US), V Hovland (Nor), A Wise (US), S Horsfield (Eng), C Davis (Aus);
-2 C Morikawa (US), M Laird (Sco), C Tringale (US)
Selected others: -1 P Casey (Eng), R Fowler (US), T Hatton (Eng)
Level B DeChambeau (US), J Rose (Eng)
1 L Westwood (Eng), J Spieth (US)
3 R McIlroy (NI)
4 D Johnson (US)
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
How%20champions%20are%20made
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Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
The specs: 2017 Maserati Quattroporte
Price, base / as tested Dh389,000 / Dh559,000
Engine 3.0L twin-turbo V8
Transmission Eight-speed automatic
Power 530hp @ 6,800rpm
Torque 650Nm @ 2,000 rpm
Fuel economy, combined 10.7L / 100km
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
