Grave doubts over a tax-cutting plan without savings to balance it

SIR – Lord Frost, discussing Kwasi Kwarteng’s mini-budget and the intervention by the International Monetary Fund (report, September 28), observes: “The only way forward for Britain is lower taxes, spending restraint and significant economic reform.”

Yet the Chancellor has given us no sense of what spending he intends to cut. So we have no idea what his “economic reform” amounts to.

The mini-budget has no foundation. Liz Truss and her Government must take us for economic illiterates.

David Kelly

Broseley, Shropshire

SIR – In the IMF’S unprecedented and insolent intrusion, one can hear the voice of the establishment. Indeed, one can almost hear the sniggers as they contemplate the fall of our Prime Minister and Chancellor.

I sincerely hope that the Prime Minister will treat them with the contempt they deserve and press on with her plans. It is a great relief to have true Conservatives in Downing Street.

Jim Wood

Rossington, South Yorkshire

SIR – I am embarrassed to be a member of the Conservative Party. In the leadership contest I voted for Rishi Sunak – a pragmatic politician with a plan to steer us through hard times.

I would encourage MPS to submit letters of no confidence in Liz Truss.

Raymond Byers

Thornton-cleveleys, Lancashire

SIR – Terry Waters (Letters, September 28) reminds us that 364 economists wrote to The Times in 1981 opposing Margaret Thatcher’s subsequently vindicated economic policy.

Perhaps he ought to be reminded that the Budget in question – also set in a time of economic hardship, excessive taxation and high inflation – adopted precisely the opposite approach to that of Liz Truss: taxes were raised (including a windfall tax on banks) and spending cut in order to crank interest rates down. Nigel Lawson, whom Kwasi Kwarteng wishes to imitate in cutting taxes, said that it was on this basis only that his later tax cuts were possible. Is it not time we recognised that Ms Truss represents the ultimate repudiation of Thatcherism?

Alexandre Guilloteau

London W9

SIR – Every two months since December 2019, I have transferred the equivalent of £150 in euros to a supplier to my business. In view of the pound crashing, I thought I would look at my transaction history.

The latest payment, sent on Tuesday, was worth €167.19 to the recipient. The highest value was €179.03 in January 2022, while the lowest was €161.97 in December 2020.

The dollar is currently very strong, and that is important. But is the pound especially weak? Not against the euro, at least according to this (admittedly back-of-an envelope) calculation.

Andrew Mounsey

Whitland, Carmarthenshire