Britain should prepare for new age of austerity, warns Simon Clarke Simon Clarke, the levelling up minister and a key Liz Truss ally, has told the Times that the market chaos that followed the government’s tax cutting mini-budget would pass and warned that Britain should prepare for a new age of austerity. He also said the prime minister was “enjoying having the chance” to enact policies that “she believes is right”. Despite the turmoil in financial markets, Clarke said that Truss was “astonishingly resilient” and urged the government to channel the spirit of Margaret Thatcher to push ahead with their vision. The 38-year-old said: If I was to describe one word for Liz at the moment, it is purposeful. She knew – and this was certainly something we discussed during the summer – that this would not be a comfortable process. Clarke added that for too long western countries have lived in a “fool’s paradise” and there would be cuts to government spending to ensure “full alignment with a lower-tax economy”. Clarke said: My big concern in politics is that western Europe is just living in a fool’s paradise whereby we can be ever less productive relative to our peers, and yet still enjoy a very large welfare state and persist in thinking that the two are somehow compatible over the medium to long term. They’re not. We need to address that precisely because in the end, if we want those strong public services then we are going to have to pay for them. I think it is important that we look at a state which is extremely large, and look at how we can make sure that it is in full alignment with a lower tax economy. Closing summary Our politics blog is now closed. Here is what you might have missed today: Simon Clarke, the levelling up minister, and a key Liz Truss ally, has told the Times that the market chaos that followed the government’s tax cutting mini-budget would pass and warned that Britain should prepare for a new age of austerity. He also said the prime minister was “enjoying having the chance” to enact policies that “she believes is right”. Despite the turmoil in financial markets, Clarke said that Truss was “astonishingly resilient” and urged the government to channel the spirit of Margaret Thatcher to push ahead with their vision. Liz Truss has used a Saturday newspaper column to defend the government’s course of action. In the face of fierce criticism, including a stinging rebuke from the IMF, Liz Truss has admitted that the mini-budget delivered by her government last week did cause “disruption”, after it was followed by a series of economic shocks, including the pound falling to an all-time low against the dollar. Writing in the Sun, she said: “For too long we have been stuck debating how to divide up the economic pie, rather than grow the pie so everyone has a bigger slice. The status quo is not working. For too long we have been held back by low growth and high taxes. We need to get things done in this country more quickly. So I am going to do things differently. It involves difficult decisions and does involve disruption in the short term.” The UK devolved governments have called for an urgent meeting with Kwasi Kwarteng and urged him to “reverse the damage” caused by his tax-cutting mini-budget. The joint letter from the finance ministers of Wales, Scotland and Northern Ireland, warns that the chancellor has taken a “huge gamble” on the health of the economy. It adds that the UK was already facing “severe economic upheaval” and that the government has made matters worse by announcing tax cuts “for the most wealthy”, without saying how they would be paid for. Dual protests were taking place in London today as actions by climate activists and cost of living campaigners collide. An Extinction Rebellion samba band played at King’s Cross station on Saturday morning, as RMT and CWU union protesters gathered for Enough Is Enough, the trade union-backed cost of living campaign. Just Stop Oil and a coalition of allied groups called for supporters to meet at 25 London locations for a march to “occupy Westminster”. As part of those protests thousands of supporters of Just Stop Oil blocked four bridges across the Thames. Protesters blocked Waterloo Bridge, Westminster Bridge, Lambeth Bridge and Vauxhall bridge with sit-down protests after marching from 25 points around the centre of London. Just Stop Oil’s activists said protesters would converge on Westminster, where a crowd led by a samba band had already gathered in Parliament Square. Hundreds had earlier sat on Westminster bridge, blocking traffic, moving after police came to warn them they would be arrested if they stayed. The Welsh secretary, Sir Robert Buckland, has said the government is “absolutely committed” to fiscal responsibility after the turmoil in financial markets following chancellor Kwasi Kwarteng’s £45bn mini-budget tax cut. After a week in which the pound slumped to an all-time low against the dollar, Buckland said ministers were committed to increasing the tax yields needed to pay for public services, PA reports. The Green party has said its call for a wealth tax on the richest 1% in the country is to “make our society more equal”. At the party’s annual conference in Harrogate, co-leader Carla Denyer outlined an emergency £75bn tax package targeting polluters and the country’s wealthiest individuals, PA reports. The money would be used to fund a nationwide insulation and renewable energy programme, the party has said. The Mirror has apologised after it mistakenly used a picture of the wrong person to illustrate a story about the chancellor, Kwasi Kwarteng, on its website. Condemning the “terrible error”, which occurred on the first day of Black History Month, the publication said: “This morning a picture in a story about Kwasi Kwarteng was wrongly captioned on the Mirror website. This was a terrible error and we apologise to Mr Kwarteng and all our readers.” The apology came after Kwarteng tweeted a screenshot of an online story about the mini-budget, featuring a picture of Bernard Mensah, the president of international for Bank of America. Kwasi Kwarteng reportedly spent some of Thursday interviewing new candidates to be permanent secretary of the Treasury. The top job is currently empty after the government sacked Tom Scholar in early September. Kwarteng’s decision to remove Scholar prompted criticism at the time due to the senior civil servant’s extensive experience, that was seen by some as vital during a time of economic uncertainty. Our environment correspondent Damien Gayle reports from today’s protests in the capital: Thousands of supporters of Just Stop Oil have blocked four bridges across the Thames. Protesters blocked Waterloo Bridge, Westminster Bridge, Lambeth Bridge and Vauxhall bridge with sit-down protests after marching from 25 points around the centre of London. Just Stop Oil’s activists said protesters would converge on Westminster, where a crowd led by a samba band had already gathered in Parliament Square. Hundreds had earlier sat on Westminster bridge, blocking traffic, moving after police came to warn them they would be arrested if they stayed. Among those sitting on Westminster bridge was Esme Garlake, 26, from London. “I think we are at a real turning point now where the inequalities in our society are so obvious,” she said. “Today is the day of the energy bills [price rise] coming out and so different groups and grassroots movements are starting to realise that we have to come together to demand social change and climate action.” Garlake was sat next to her mother, Marilyn Garlake, 59, from Oxford, who said she saw synergies between activism for the climate and cost of living crises. “A tipping point is being reached now,” she said. “If you look at what’s happening with the cost of living crisis and the climate crisis everything is coming together, and we have a government that is refusing to take the action that’s needed and making the situation worse.” Our North of England correspondent Robyn Vinter reports: “Where’ve you been?” The Yorkshire-accented question by the BBC Radio Leeds breakfast show host Rima Ahmed to Liz Truss dominated national news and social media after a round of disastrous local radio interviews for the prime minister this week. This unexpected exposure came in part because, like Truss, some people were taken by surprise that local radio presenters were capable of handing out such a grilling. For Ahmed, it is easy to hold a politician to account when you spend every day talking to the people affected by their policies. Before speaking to Truss on Thursday, Ahmed read out a comment from Sophia in York, after asking listeners what they would like to ask the prime minister. Read more: Radio host Rima Ahmed says it’s easy to interview Liz Truss if you speak to locals Tory MP James Cartlidge has posted a Twitter thread criticising Kwasi Kwarteng’s decision to cut tax for the top earners in his mini-budget. In one of a series of tweets, the MP for South Suffolk said: At my Whatfield surgery yesterday I was asked what I thought of scrapping the 45p tax rate. It’s not right for me to keep my frank answer from other constituents – to be clear, cutting tax for top earners whilst reducing benefits in a cost of living crisis is unacceptable. If this opinion is more widely shared amongst Tory backbenchers there could be fireworks at the upcoming party conference in Birmingham. Our environment correspondent Damien Gayle reports from the protests at King’s Cross: On the margins of the rally stood crews of protesters carrying the insignia of XR, the climate activist group. They said their objectives were the same as the cost of living campaigners, plus climate. Marilyn Taylor, 71, from Muswell Hill, London, pointed to her placard and said, said: “The whole point of this is to bring these two campaigns together, and I hope that’s clear from here: “‘I can’t afford oil and gas and neither can the planet.’” Taylor and her friends said renewable energy sources were now cheaper than fossil fuels, and investment in renewables would have averted both the climate and coat of living crises. “All the movements are linked,” Taylor said. “I can see there’s a lot of focus on the strikes today but hopefully our presence will help to make that really important link.” As we reported earlier, our environment correspondent Damien Gayle is at the scene covering the numerous protests in London. Video footage posted online shows protesters led by environmental campaigners Just Stop Oil converge on the road as they prepare to march by King’s Cross to Westminster. Ben Riley-Smith, the political editor at The Daily Telegraph, is reporting that Kwasi Kwarteng spent some of Thursday interviewing new candidates to be permanent secretary of the Treasury. The top job is currently empty after the government sacked Tom Scholar in early September. Kwarteng’s decision to remove Scholar prompted criticism at the time due to the senior civil servant’s extensive experience, that was seen by some as vital during a time of economic uncertainty. Former Labour shadow chancellor John McDonnell argues: People thought Corbyn and I would crash the pound. The real risk was Truss and her fanatics Watching the events since the introduction of the “Not a Budget”, I have sat with my head in my hands. You could almost weep for the lasting consequences of this show of arrogance, ideological obstinacy and incompetence. People’s homes, pensions and the public services they rely upon are all now at serious risk. It’s hard to comprehend just how badly they misjudged the situation and how little they prepared for taking over the highest offices of state. In his brilliant book The Great Crash, 1929, the economist JK Galbraith advises that to avoid a crash in the future you should put in place a vast range of institutional protections, but that the most important protection is memory. Read more of John McDonnell’s thoughts here: People thought Corbyn and I would crash the pound. The real risk was Truss and her fanatics Reporting from the protests at King’s Cross, Damien Gayle writes: Jeremy Corbyn, the former Labour leader, drew rapturous applause as he denounced the government’s plans to cut taxes for the richest and benefits for the poorest. “Our strength is our organisation, our strength is our unity,” Corbyn said. “So let’s stand up for what we believe in.” Dave Ward, the general secretary of the CWU, said the campaign would pressure the Labour party “into the right place to stand up for working people”. “Everybody’s job who cares about people in this country to have a fair deal for everything, we have got to build collectivism,” Ward said. “Are you ready for that? “Enough is enough. Let’s get out there: let’s protest, let’s rally. We are going to make change.” Mirror apologises after using wrong picture to illustrate story about Kwasi Kwarteng Miranda Bryant The Mirror has apologised after it mistakenly used a picture of the wrong person to illustrate a story about the chancellor, Kwasi Kwarteng, on its website. Condemning the “terrible error”, which occurred on the first day of Black History Month, the publication said: “This morning a picture in a story about Kwasi Kwarteng was wrongly captioned on the Mirror website. This was a terrible error and we apologise to Mr Kwarteng and all our readers.” The apology came after Kwarteng tweeted a screenshot of an online story about the mini-budget, featuring a picture of Bernard Mensah, the president of international for Bank of America. The photograph was incorrectly captioned with the words: “Kwasi Kwarteng said he had to do ‘something different’ with mini-budget.” “That isn’t me… @DailyMirror,” wrote the chancellor on Saturday morning in a tweet published just before 10am. Dual protests are underway in London today as actions by climate activists and cost of living campaigners collide. An Extinction Rebellion samba band played at Kings Cross station on Saturday morning, as RMT and CWU union protesters gathered for Enough Is Enough, the trade union-backed cost of living campaign. Just Stop Oil and a coalition of allied groups called for supporters to meet at 25 London locations for a march to “occupy Westminster”. These protests coincide with widespread strikes by 200,000 union members taking action over pay and conditions. Enough Is Enough, who say that 800,000 people have signed up in support of their demands, are also holding rallies in Manchester, Glasgow, Liverpool, Bristol, Norwich, Cardiff and Birmingham. Despite rain, hundreds of people have gathered in Edinburgh in support of striking rail and postal workers. Aslef and the Rail, Maritime and Transport Union (RMT) voted “resoundingly” to take industrial action against the companies who they said failed to give pay rises in line with inflation. Network Rail workers who are members of RMT began the first of two 24-hour walkouts on Saturday. ScotRail passengers faced disruption across the network with just a fraction of usual services across the central belt and east coast running. Liz Truss "needs a reset moment", admits insider Jessica Elgot and Pippa Crerar report: The slogan for the Conservative party conference, printed on its brochure, is Getting Britain Moving, prompting a stream of jokes and memes online as it was revealed on the day mortgage lenders began to pull their products and the pound slid to its lowest level. After a catastrophic week, Liz Truss hopes the conference will give her some space to wrest back control of the party and set out her plans on her own terms. “She needs a reset moment,” one insider admits. “Although she currently seems to be the only person who actually thinks that might be possible.” The absences at the Tory conference will say as much as the speeches. Rishi Sunak, Boris Johnson, Jeremy Hunt, Sajid Javid, Mel Stride and David Davis are all Tory big beasts who are steering clear of Birmingham. Two ousted cabinet ministers, Grant Shapps and Michael Gove, will be speaking on the fringes. Shapps has hinted he is likely to be loyal, in the hope of making a cabinet return, while Gove plans to speak out judiciously on the environment. Another former cabinet minister said he would be there “but in heavy disguise”. Perhaps not the wisest move to describe Birmingham, the host city for this year’s Tory party conference, as a “dump”. But that is what Daniel Grainger, the chair of the Young Conservative Network, did on Twitter before his post was swiftly deleted after a rebuke from the mayor of the West Midlands, Andy Street. In an follow up Twitter post, Grainger said: My tweet in relation to Birmingham was not about the city or its people. I’ve always enjoyed my visits to your city, but this morning I was greeted by an individual who threatened me with a mugging. I was angry and tweeted without thinking, I apologise for any offence caused. I’d also like to directly apologise to @andy4wm, the @Conservatives and other representatives of Birmingham for my ill conceived comments. I have now deleted the tweet. The RMT general secretary, Mick Lynch, has responded to comments made by the levelling up secretary, Simon Clarke, that for too long western countries have lived in a “fool’s paradise” and there would be cuts to government spending. Responding from a picket line in Euston, Lynch told LBC: The Tories must know all about living in a fool’s paradise because they are completely deluded about how this country works and what people need. He added that Kwasi Kwarteng’s tax cutting mini-budget was an “ideological experiment” that would “blow up” in the government’s faces. Rowena Mason and Aubrey Allegretti report: In recent years, Bill Gates held a roundtable discussion to which Kwasi Kwarteng was invited as a senior minister. The billionaire was hosting the meeting, surrounded by high-profile guests. But according to observers, when Kwarteng turned up, he began to act as if he was the one in charge of the meeting “offering his opinion on everything” and “lecturing” Gates about the businessman’s own expert subject. It was “bizarre and embarrassing” to watch, according to one person with knowledge of the episode. A tendency to arrogance – but also undoubted cleverness – is a common theme that many people who have worked with the new chancellor seem to report. This was the case even among fellow Tories, before he angered them with his politically and economically explosive mini-budget. The first pictures from an expected wave of cost of living protests throughout of the UK today have just appeared on the newswires. The images are from a march in Leeds, with multiple people clutching banners calling for more funding for the NHS and supporting recent strike action by unions. There are expected to be dozens of rallies throughout the day, with some people expected to set fire to utility bills in protest against soaring energy costs. UK householders are poised to set fire to their utility bills on Saturday, in a wave of cost of living protests timed to coincide with the jump in gas and electricity unit prices that will cause bills to soar. In what organisers forecast will be the largest nationwide protests against an economic crunch, which got worse this week with money market chaos and mortgage rate rises looming, dozens of rallies will be staged from Plymouth to Aberdeen, while postal and railway workers also strike. On the day the government’s £150bn energy price guarantee comes into effect, which allows average household bills to hit £2,500 a year, up from £1,971, people are expected to torch bills in Birmingham, Bradford, Brighton and London. Tens of thousands of railway workers are taking part in a mass strike will cause some of worst rail disruption of the year. Large parts of the country are without any rail services, with only 11% of normal schedules in operation. The timing coincides with the London Marathon on Sunday, leaving participants struggling to reach the capital for the run, PA reports. The RMT general secretary, Mick Lynch, speaking from a picket line at Euston station on Saturday, was pressed on how the union would “justify” causing disruption to a “major charity event”. He told BBC Breakfast that union members did not want to cause the public difficulties and said it was the Tory party conference that was being targeted, rather than the marathon. Asked whether he would apologise to the public, he said: Absolutely. We don’t want to inconvenience the public and we’re really sorry that that’s happening. But the government has brought this dispute on. They (put) the challenges down to us, to cut our jobs, to cut our pensions and to cut our wages against inflation. Network Rail’s chief negotiator, Tim Shoveller, described the strikes as a “huge own goal” that would result in “less money to spend improving the railway”. Below are some of the latest pictures from the newswires the picket line in Leeds which has been visited by Labour MP Richard Burgon.