London Daily

Focus on the big picture.
Saturday, Aug 23, 2025

Kwasi Kwarteng: I want to keep cutting taxes

Kwasi Kwarteng: I want to keep cutting taxes

Chancellor Kwasi Kwarteng has said he wants to keep cutting taxes as part of an effort to boost UK economic growth.

After announcing a massive shake-up of taxation on Friday, Mr Kwarteng told the BBC there was "more to come".

The government wants to bolster the economy amid concerns the UK may already be in recession.

Ministers also plan to allow more migrant workers in some sectors as part of its growth strategy - in order to address labour shortages.

A government source told the BBC ministers would set out plans to change migration rules before the end of the year.

Mr Kwarteng announced the biggest package of tax cuts in 50 years on Friday, which included scrapping the top rate of income tax.

The move drew criticism from Labour, which said the tax cuts would benefit the richest.

Many investors were also concerned about the package, with the pound sinking against the dollar to fresh 37-year lows, and UK-listed stocks falling.

But on Sunday, Mr Kwarteng denied the measures helped the rich more, and suggested further tax cuts were on the cards.

"We've actually put more money into people's pockets," he said. "We're bringing forward the cut in the basic rate [of income tax] and there's more to come.

"I want to see over the next year, people retain more of their income, because I believe it's the British people that are going to drive this economy," he said.

In its growth plan, the government said it had an "ambitious" programme to boost the economy which would include a review of the tax system to make it "simpler".

But former Conservative chancellor, Lord Kenneth Clarke, said the plan risked driving up inflation without helping the economy to grow.

Speaking to BBC Radio 4's the World this Weekend programme, Lord Clarke said he did not accept the premise "that you make tax cuts for the wealthiest 5%, and it makes them work so much harder, and rush to invest, and it pays for itself or even attracts investment into the country".

"I'm afraid that's the kind of thing that's usually tried in Latin American countries without success," he said. "If it was so simple, we would have got rid of taxes altogether some time ago."

"What the increased spending power that you give to the better-off 5% is going to do, is run the risk of further stimulating inflation. And we're going into a serious inflationary recession this winter."


Migration measures


Meanwhile, a government source told the BBC Number 10 believed more skilled migration would support its plan for growth.

The source said: "We need to put measures in place so that we have the right skills that the economy, including the rural economy, needs to stimulate growth.

"That will involve increasing numbers in some areas and decreasing in others.

"As the prime minister has made clear, we also want to see people who are economically inactive get back into work."

Businesses have been asking for more visas for skilled workers to plug gaps in the UK workforce.

The shortage occupation list is expected to be expanded to help firms recruit overseas workers to deal with labour shortages.

The government is also looking at lifting the cap on seasonal workers, according to reports.

During her Conservative leadership campaign, Prime Minister Liz Truss said she would tackle farming labour shortages - partly caused by post-Brexit freedom of movement restrictions and exacerbated by the Covid pandemic - with a short-term expansion to the seasonal workers scheme.


Chancellor Kwasi Kwarteng: "What I'm focused on, is tax cuts across the board"


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
×