London Daily

Focus on the big picture.
Friday, Aug 22, 2025

Chancellor Kwasi Kwarteng insists he is 'not going anywhere' - and hints at mini-budget U-turn

Chancellor Kwasi Kwarteng insists he is 'not going anywhere' - and hints at mini-budget U-turn

Last week, after open revolt from Tory MPs and a surge in support for Labour in the polls, Ms Truss and Mr Kwarteng abandoned the plan to abolish the highest 45% tax rate.
The chancellor has insisted he is "not going anywhere" amid the economic turmoil - and when asked if he was about to do a U-turn on corporation tax he said: "Let's see".

Speaking earlier in the US where he is attending IMF meetings, Kwasi Kwarteng told reporters that he remains "totally focused" on delivering the government's growth plan.

Later, in response to a question about how markets "have improved today because they think you're about to do a U-turn on corporation tax", Mr Kwarteng said: "Let's see," according to The Telegraph.

It is his strongest indication yet of a possible change of course.

During a visit to Washington, Mr Kwarteng was asked whether he and Liz Truss, the prime minister, will be in their jobs this time next month.

"Absolutely. 100%. I'm not going anywhere," he said.

The chancellor admitted there has been some "domestic turbulence" since he unveiled his tax-cutting mini-budget at the end of September and the pound fell to record lows against the dollar, but said there is "a very dicey situation globally".

"I speak to Number 10, the PM all the time, and we are totally focused on delivering the growth plan," he said.

Pushed on whether there will be any more reversals of policies in the mini-budget, Mr Kwarteng said: "I am totally focused on the growth agenda."

Last week, after open revolt from Tory MPs and a surge in support for Labour in the polls, Ms Truss and Mr Kwarteng abandoned the plan to abolish the highest 45% tax rate.

Sky News understands discussions are under way in Downing Street over whether to scrap some of the contentious proposals which remain in the chancellor's tax-cutting mini-budget.

The proposed changes to corporation tax and dividend tax are those understood to be under discussion.

Downing Street insisted earlier on Thursday that there will be no more U-turns on policies in the government's tax-cutting mini-budget despite pressure from Conservative MPs for changes to be made.

Asked to confirm there would be no further reversals, the prime minister's official spokesman said: "Yes, as I said to a number of questions on this yesterday - and the position has not changed from what I set out to you all then."

Ms Truss faces open revolt in her party over the £45bn package of unfunded tax cuts in the mini-budget, which unleashed chaos in the markets when it was announced last month.

Former home secretary Priti Patel became the latest senior Tory to suggest the government could be forced into another U-turn, telling Sky News "market forces" could make a reversal on corporation tax cuts unavoidable.

Giles Wilkes, a senior fellow at the Institute of Government and a former special advisor to Theresa May, has also said a U-turn "might be the only way the government can actually get out of this self-made disaster".

He said Liz Truss is facing possibly the most difficult situation a prime minister has been in this side of the Second World War".

"I can't think of somebody who's put themselves into such a position where they're forced to defend something that nobody else thinks is defensible, and forced to contemplate really tough measures like slashing benefits or slashing important government spending budgets in order to try to keep a policy that nobody else believes can go on the road," he said.

"It's an incredibly difficult position, but right now, she's playing for survival stakes. She has to think, 'what do I need to throw overboard in order to keep things going?' And if it's pretty much all the policies announced in the so-called mini budget, then that's the only thing I can think she can do."

The chancellor will set out his debt-cutting plan in more detail on 31 October, having bowed to pressure to bring the date forward from 23 November given the economic turbulence.

Earlier on Thursday, James Cleverly, the foreign secretary, refused to say there would be no more reversals.

He told Sky News the Halloween statement would give "a more holistic assessment of the public finances and our response to the global headwinds that every democracy, every economy in the world is facing".

Pressed on the plan to axe the increase in corporation tax from 19% to 25% in April, Mr Cleverly said it is "absolutely right" the government helps businesses to "stay competitive" and "stay afloat".

The Treasury had vowed to reduce the rate of income tax on dividends by 1.25 percentage points.

Mr Kwarteng is meeting with International Monetary Fund (IMF) leaders in Washington DC today, after the institution's chief economist said tax cuts threatened to cause "problems" for the UK economy.

Speaking at a press conference in Washington, the managing director of the IMF said it is sometimes right for a "recalibration" of policies as she was questioned over reports of further U-turns after the mini-budget market chaos.

Kristalina Georgieva said: "Our message to everybody, not just the UK, is that at this time, fiscal policy should not undermine monetary policy."

Meanwhile, in a post on social media on Thursday, former Conservative chancellor George Osborne questioned why Ms Truss and Mr Kwarteng would wait for the chancellor's statement on 31 October to perform an "inevitable U-turn" on their mini-budget.

On Wednesday, Mel Stride, the Tory chairman of the Commons Treasury Committee, said that given Ms Truss's commitments to protect public spending, there was a question over whether any plan that did not include "at least some element of further row back" on the tax-slashing package can reassure investors.

While David Davis, the Tory former minister, called the mini-budget a "maxi-shambles" and suggested reversing some of the tax cuts would allow Ms Truss and Mr Kwarteng to avert leadership challenges for a few months.
Newsletter

Related Articles

0:00
0:00
Close
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
William and Kate Are Moving House – and the New Neighbors Were Evicted
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
Taylor Swift on the Way to the Super Bowl? All the Clues Stirring Up Fans
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Apple Expands Social Media Presence in China With RedNote Account Ahead of iPhone 17 Launch
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Bill Barr Testifies No Evidence Implicated Trump in Epstein Case; DOJ Set to Release Records
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
Emails Worth Billions: How Airlines Generate Huge Profits
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
JPMorgan Plans New Canary Wharf Tower
Zelenskyy and his allies say they will press Trump on security guarantees
Beijing is moving into gold and other assets, diversifying away from the dollar
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
The Drought in Britain and the Strange Request from the Government to Delete Old Emails
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
"No, Thanks": The Mathematical Genius Who Turned Down 1.5 Billion Dollars from Zuckerberg
The surprising hero, the ugly incident, and the criticism despite victory: "Liverpool’s defense exposed in full"
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
×