Lies, Falsehoods and Misrepresentations from Boris Johnson to Rishi Sunak

‎”What has caused the effect in pension funds … is not necessarily the mini-budget … and I think jumping to conclusions about causality is not meeting the BBC’s requirement for impartiality”

Jacob Rees-Mogg, BEIS Secretary of State, BBC Radio 4

Facts

According to the Institute for Fiscal Studies Britain would need to find £60bn of savings by 2026 to fill the gap left by unfunded tax cuts, as well as well as costs of extra borrowing. Hence the international money markets reaction to the chancellor’s so-called mini-budget. 

Verdict

While it is certainly true that interest rates were rising world wide, there is no doubt that Kwarteng sparked a panic in the markets that threatened pension fund liquidity. The BBC would have been negligent had it failed to report this. 

On October 6th the Bank of England stated they intervened after the Truss/Kwarteng  budget caused a “self-reinforcing spiral” which was “threatening severe disruption of core funding markets and widespread financial instability.” The BBC was not, as Rees-Mogg stated, jumping to conclusions As this website shows, this was far from the first time that  the Conservative government had made unjustified attacks on the BBC. 

We emailed Mr Rees-Mogg’s office offering him the chance to respond. The email was received, but no reply. 

Scroll to Top