AN MP has blamed “global pressures” for the recent financial market turmoil, with the Bank of England intervening to protect pension funds.
The Bank of England yesterday announced it would buy £65 billion worth of government bonds after fears over the government’s economic policies sent the pound plummeting and sparked a sell-off in financial markets that brought some UK pension funds to the brink of collapse .
However, Crawley MP Henry Smith said the fallout from Covid and Russia’s ongoing war on Ukraine is behind the recent economic shock.
He said: “It’s important that we grow the UK economy to feed homes across Crawley and across the country and to fund the public services we rely on.
“I strongly support the government’s efforts in this regard through tax cuts and other supportive measures.”
It comes as Andrew Griffith, MP for Arundel and South Downs and Finance Secretary, defended the government’s mini-budget as “the right plans” to “make our economy competitive”.
Speaking to Sky News, he said: “We are protecting every household and every business from the biggest macro shock right now, which is energy costs.
“We are seeing the same effects of Putin’s war in Ukraine affecting things like energy costs and some of the supply side effects. This affects all major economies.”
Prime Minister Liz Truss has defended her plans in a morning round of interviews on regional BBC radio stations, saying the government is “putting this country on a better path in the long term”.
In her first public statements since the mini-budget, Ms Truss insisted “urgent action” was needed but acknowledged the government’s decisions had proved “controversial”.
Speaking to BBC Radio Leeds, Truss said: “We had to act urgently to grow our economy, get Britain moving and also deal with inflation.
“Of course that means making controversial and difficult decisions, but I’m ready to do that as Prime Minister because it’s important to me that we get our economy going, we make sure people get through this winter and we’re ready to do anything do to achieve this.”
https://www.theargus.co.uk/news/22844400.crawley-mp-blames-global-pressures-financial-turmoil/?ref=rss Crawley MP blames “global pressures” for financial turmoil