Fallout from UK mini budget

Britain’s Prime Minister and Chancellor are facing calls to slash public spending by more than the annual defence budget to stabilize public finances and halt a growing market rout
     

Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng


Sep 23: Cost of Chancellor Kwarteng’s mini budget totals £161 billion ($178bn) over five years, according to Treasury

Sep 26: Sterling crashes. Pound falls to record low
£1 = $1.035

Sep 28-Oct 14: Bank of England steps in to buy £65 billion ($72bn) of government bonds, with limit of £5bn ($5.5bn) per day

Oct 10: Central bank increases emergency bond buying limit to £10bn ($11bn) per day as fire sale of gilts (government debt) threatens economic stability

  
Benchmark 10-year government bonds (yield, October 11) 
UK	4.432%
Norway 	3.680%
Spain 	3.502%
Portugal 3.419%
Austria 3.055%
Belgium 2.973%
France 	2.922%
Ireland 2.879%
Germany 2.340%
Sweden 	2.223%
Switz.	1.513%

£42.4bn ($47bn)
UK defence budget 2020/21

£60bn ($66.4bn)
Spending cuts needed


Oct 11: Institute for Fiscal Studies warns Kwarteng must find savings of at least £60 billion ($66.4bn) to shore up market confidence
     
Oct 31: Kwasi Kwarteng to present his fiscal plan


Sources: Bloomberg, Financial Times, Trading Economics 
Pictures: Getty Images 
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