UK Government Seeks to Rebuild Credibility After BOE Bailout

Kwarteng to unveil reforms to ease debt and inflation fears
No U-turns planned despite backlash against tax-cut package

WATCH: The UK government will push ahead with its budget plan despite the BOE’s intervention to stave off a crash in the gilt market. Lizzy Burden reports.Source: Bloomberg

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By Philip Aldrick

September 28, 2022 at 6:36 PM UTC

This article is for subscribers only.

The UK government hopes the Bank of England’s intervention to stave off a market crash on Wednesday will buy time to rebuild confidence in the disastrous mini-budget.

According to an individual familiar with the government’s thinking, there is no plan to reverse the tax cuts announced. Instead, Chancellor Kwasi Kwarteng wants to calm febrile markets by clarifying his strategy and restore faith in his commitment to sound money.