Editorial 01.11.24
Friday’s front pages continue to cover the reaction and fallout from the Budget delivered by Chancellor Rachel Reeves on Wednesday. Several papers lead to a rise in the cost of government borrowing amid investor concern about levels of government debt.
Elsewhere, there’s a dash of international coverage on the UK front pages this morning, with images of the floods in Spain making several splashes. There are also reports on the upcoming US election as Kamala Harris and Donald Trump try to win over the swing states in the final stretch of the campaign.
‘Rise in cost of borrowing’
‘Markets have turned on the chancellor,’ claims the Telegraph.
The Daily Telegraph says the markets have “turned on” the chancellor and that the value of bonds, UK stocks and the pound have all fallen in a “rebuke” to her plans.
‘Bank of England and Treasury on high alert,’ says The Guardian.
The Guardian says some analyses have attempted to compare with Liz Truss’s disastrous mini-budget, but they note the gyrations in the City on Thursday were far less substantial than those of two years ago. The paper says the Bank of England and the Treasury are on high alert and monitoring the situation.
‘City plays down comparisons to 2022 mini-budget,’ reports the FT.
The FT says that many in the City have played down comparisons with the 2022 mini-budget mess and says that while a number of business figures have criticised Reeves’ tax rises, “admirable job of balancing spending, borrowing and taxation” in order to drive growth.
‘Chancellors tax on farming could lead to drop in food production,’ says The Sun.
The Sun says the chancellor’s decision to impose an effective 20% inheritance tax on farming land and machinery above a £1m threshold could lead to a dramatic drop in food production and supplies running low.
‘Reeves throwing obstacles in the way of business,’ says the Mail.
The Daily Mail says Reeves has taken a gamble with the economy and that she is “throwing obstacles in the way of business” and “risks replicating the stagnation afflicting Europe’s major economies” and “eking out meagre growth at best”.’
‘Cost of sickness will climb to £100bn a year,’ claims The Times.
The Times says the OBR has warned that by the end of this parliament, about half of claims for the main welfare benefit will be for poor health. It means the total cost of sickness will climb to £100bn a year. The paper says experts believe the soaring cost of sickness benefits is a reason why the country is paying more taxes without receiving better public services.
‘Spain prepares for more rain amid horror flooding’
‘Death toll rises to 158 as rescuers search for survivors,’ reports the Mirror.
The Daily Mirror features a large image of a street in Valencia devastated by the floods. The paper says the death toll has reached 158 with rescuers desperately hunting for survivors. The paper quotes an expert saying climate change is to blame for the floods and warns more weather disasters are to come.
‘Spain’s worst natural disaster in living memory,’ says The Times.
The Times also carries an image of the damage from the floods, with the article noting the rising death toll. The paper says the storm is the country’s worst natural disaster in living memory.
‘Spain could see more damage as bad weather is set to continue,’ reports The Guardian.
The Guardian has an image of cars piled onto each other after being swept up in the floods. The paper reports the country is now in three days of mourning and could expect to see further destruction as more bad weather is forecast.