ECONOMISTS have roundly rejected Business Secretary Jacob Rees-Mogg's claim that the UK's financial turmoil was not being driven by the mini-budget.
The senior Conservative on Wednesday sought to attribute blame to the Bank of England's failure to raise interest rates in line with the US for the chaos in the markets.
However, a range of financial experts unanimously told MPs that Chancellor Kwasi Kwarteng's £45 billion giveaway of unfunded tax cuts played a major role in the pound's plunge.
They said the sacking of the Treasury's top civil servant Sir Tom Scholar and the delay to publishing the Office for Budget Responsibility's independent forecasts also contributed.
Deutsche Bank's chief UK economist Sanjay Raja told the Commons Treasury Committee the mini-budget on September 23 was the "straw that broke the camel's back".
Mr Raja argued there is "absolutely a global component" to the chaos but was adamant there is an "idiosyncratic UK-specific component" as well.
READ MORE: Rees-Mogg says BBC breaching impartiality rules by blaming Tories for market chaos
He said the "trade shock" because of Brexit is a factor, and added: "You throw on the September 23 event, you've got a sidelined financial watchdog, you've got lack of a medium-term fiscal plan, one of the largest unfunded tax cuts we've seen since the early 1970s, it was kind of the straw that broke the camel's back."
Resolution Foundation chief executive Torsten Bell was clear the huge package of cuts, which was downgraded to £43 billion after Mr Kwarteng's U-turn on the top rate of income tax, should not have happened during the current febrile financial environment.
"Yes, firing Treasury civil servants isn't a good idea, that hasn't helped, sidelining your fiscal watchdog hasn't helped," he told the MPs.
Labour's Dame Angela Eagle asked the panel if the mini-budget was to blame for the turmoil.
Firm nods came from the Institute for Fiscal Studies' Paul Johnson and the Institute for Government's Gemma Tetlow, as well as Mr Raja and Mr Bell.
It comes as the Bank's chief economist has said the Government's mini-budget will put further pressure on inflation as he reiterated his stance that a substantial interest rate hike will be needed in November.
Huw Pill said in a speech given at the Scottish Council for Development and Industry in Glasgow that the fiscal announcements "will add to the inflationary pressure" that has come from the Government's energy price cap.
Glasgow city centre hotel sold from insolvency
THE former Pocotel hotel in Glasgow city centre has been sold from administration from a guide price of £4.5 million to the Address Collective, which has three hotels in the Republic of Ireland.
Property agent Savills conducted the sale on behalf of the administrators of Bracknell Property LLP.
Former Ayr Grammar school up for sale
THE former Ayr Grammar primary school and detached schoolhouse is being sold by South Ayrshire Council as a development opportunity.
Shepherd Chartered Surveyors has been appointed to market the site and properties.
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