London Daily

Focus on the big picture.
Wednesday, Jun 17, 2026

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
Government Advances New Airport Slot Rules to Ease Airline Operating Constraints
BBC Opens Flagship Science-Fiction Franchise to Competitive Production Bids
Chancellor Meets City Leaders Amid Concerns Over Gilt Market Liquidity
Rathbones Shares Fall Seventeen Percent After Regulatory Review Reveals Compliance Failings
United Kingdom Joins Group of Seven Initiative Using Artificial Intelligence and Quantum Computing for Cancer Research
Parliament Debates Doubling Tax Allowance for Pensioners After Major Public Petition
Measles Cases Exceed Seven Hundred in London and the West Midlands
British Military Leadership Faces Parliamentary Scrutiny After Defence Secretary's Sudden Resignation
House of Lords Begins Debate on Steel Industry Nationalisation Legislation
Parliament Advances Bill to Abolish NHS England and Create Single Patient Records
Parliament Fast-Tracks National Security Bill to Expand Powers Against Foreign Threats
United Kingdom and European Union Set July Summit to Deepen Post-Brexit Cooperation
United Kingdom Imposes Seventy New Sanctions on Russia and Expands Support for Ukraine's Nuclear Sector
United Kingdom Announces Social Media Ban for Children Under Sixteen
0British Government Investigates Reports of Russian Warship Firing Warning Shots Near Isle of Wight
UK Supreme Court Revises Legal Definition of Deprivation of Liberty
King’s Birthday Honours Recognise Contributions Across Science, Culture and Public Service
UK Ministry of Defence Reports Interdiction of Russian Shadow Fleet Vessel
UK and US Launch Joint Regulatory Programme for Medicines and Healthcare Products
Solicitor General Refers Murder Sentence to Court of Appeal Under Unduly Lenient Scheme
UK Launches £1.6 Million Mobile Museum Initiative to Expand Cultural Access
Judicial Pay Structure Undergoes Government Review Following Senior Recommendations
Government Confirms Nearly 180 New Youth Hubs Across the United Kingdom
UK Government Expands Careers Support Through Partnership with LinkedIn
Digital News Report Highlights Growing Global Concern Over AI and Information Overload
UK Chancellor Reaffirms Fiscal Discipline and Borrowing Reduction Strategy
UK Government Invests £219 Million in Sustainable Aviation Fuel Development
Rolls-Royce Small Modular Reactors Secures Major Swedish Export Contract
Government Confirms Locations for Nearly 180 Youth Hubs Across Great Britain
UK Government Partners with LinkedIn to Expand Employment Support Services
Reuters Institute Report Flags Rising Public Anxiety Over News and Information Overload
UK Government Commits £219 Million to Expand Sustainable Aviation Fuel Industry
Chancellor Convenes Market Engagement Group to Assess UK Economic Outlook and Productivity Risks
Rolls-Royce Wins Multibillion-Pound Swedish Contract for Small Modular Nuclear Reactors
Government to Ban Social Media Access for Under-Sixteens Across the United Kingdom
Government Approves Fast-Tracked Broadcast Merger Reshaping UK's Media Landscape
Resignation of Defence Secretary John Healey Triggers Debate Over UK Military Strategy
Britain Intensifies Diplomatic Efforts to Support US-Iran Ceasefire
Bank of England Faces Tough Interest Rate Choices After Economic Contraction
Belfast Sees Second Day of Anti-Migrant Riots as Police Deploy Water Cannons
UK Economy Shrinks in April as Energy Price Shocks Weigh on Growth
UK to Ban Social Media Access for Children Under 16 From 2027
UK Parliament Opens Week of Fast-Tracked Security and Infrastructure Legislation
Northern Ireland Projects £21 Million Boost From Major Cultural and Sporting Events
UK and Japan Sign Technology Security Pact to Strengthen AI and Supply Chain Cooperation
UK Welcomes US-Iran Peace Breakthrough Aimed at Restoring Strait of Hormuz Shipping
British Forces Intercept Russian Shadow Fleet Oil Tanker in English Channel Sanctions Operation
UK to Ban Social Media for Under-16s Under Landmark Online Safety Expansion
Anti-Immigrant Riots Spread Across Belfast, Raising Security Concerns
Ministry of Defence Opens Europe's Largest Drone Testing Facility in Swindon
×