Politics as it happened: Liz Truss pledges not to reduce public spending in first PMQs since mini budget

Liz Truss pledged not to reduce public spending in her first PMQs since her disastrous budget.

Sir Keir Starmer quizzed her on the mini budget and mortgage rates before asking about her pledge, during the Tory leadership campaign, that she would not reduce public spending. Responding, the Prime Minister said she “absolutely” would not

The markets were plunged into turmoil again as Bank of England governor Andrew Bailey warned there could be no further extension of the emergency market support beyond the end of the week.

“My message to the (pension) funds involved – you’ve got three days left now. You have got to get this done,” he said. “Part of the essence of a financial stability intervention is that it is clearly temporary.”

Following Mr Bailey’s remarks, sterling fell more than a cent against the dollar to its lowest rate since September 29. The pound was lower against both the dollar and euro on Wednesday morning amid continued unease among financial traders.

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