Thursday evening British news briefing: Bank of England warns of years of recession

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Recovery from Covid would always lead to economic disruption and the war in Ukraine has led to a spike in energy prices.

But could the Bank of England have been better able to absorb the shocks?

Forerunner Liz Truss, the Tory leader, has pledged to “reexamine” the bank’s mandate “to make sure inflation is tough enough”.

There was evidence of the impact of rising prices on the broader economy today, as UK builders were shown to be their most gloomy since the start of the pandemic as recession fears dragged the sector into its first slowdown in 18 months.

Andrew Lilico suggests that it is time to revoke the Bank’s independence.

Tax Cut Warning

Ms Truss promised during the campaign that she would reverse the 1.25 percentage point increase in National Insurance that took effect at the start of this fiscal year in an effort to immediately help families with the rising cost of living.

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The odds of that happening seem increasingly likely, given the results of the polls in favor of the Secretary of State and today Telegraph has learned that figures in her leadership campaign are secretly trying to persuade MPs who have supported her rival Rishi Sunak to switch sides.

But the Secretary of State’s strategy to cut taxes was met with opposition from the boss of retail chain Next.

Lord Wolfson has warned that tax cuts will not solve the challenges facing the UK economy.

Find out what each candidate’s budget cuts will save you as they prepare to go head-to-head later in a televised leadership debate on Sky.

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How to get a pay raise?

Retirees are on track to receive consecutive 10-percent increases in state pensions as high inflation is expected to remain in double digits for most of next year.

Is there anything workers can do to protect their wealth, with a 15-month recession predicted by the Bank of England?

Switching to the best savings rate, investing in companies that can prosper when borrowing costs rise, and holding cheap mortgage rates while they last can have a big impact.

Read the ways to make money when interest rates rise.

Despite sky-high utility bills and sky-high rents, wage growth has not been able to keep pace.

But with a huge range of job openings, we live in a red-hot recruitment market. Learn how to secure a 100 percent pay raise.

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Commentary and analysis

Around the World: Missiles Fired in Taiwan’s Waters

The Chinese military launched multiple ballistic missiles into the waters around Taiwan today as China’s largest-ever military exercises began around the island. The Taiwan Ministry of Defense confirmed that 11 missiles had been fired, almost double the number fired in Taiwan in July 1995 during the Third Strait Crisis. In response, Taiwan activated “relevant defense systems,” a senior military official said at a briefing. Japan said five ballistic missiles fired by China also appeared to have landed in its exclusive economic zone, in the first such incident. Watch videos of the missiles being fired and a map showing where they landed.

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