London Daily

Focus on the big picture.
Saturday, Sep 06, 2025

Kwasi Kwarteng promises 'relentlessly upbeat' economic plan as Tories warn him not to burden the poorest

Kwasi Kwarteng promises 'relentlessly upbeat' economic plan as Tories warn him not to burden the poorest

The chancellor insists his Halloween announcements will be positive, but his own party have concerns about troubles ahead after the fall-out from his mini-budget.

Kwasi Kwarteng has promised his upcoming economic plan will be "relentlessly upbeat" as some of his own MPs seemed doubtful of his direction.

Speaking in the Commons for the first time since unveiling his mini-budget, the chancellor would not reveal more detail of his next financial announcement, set for Halloween.

But he promised it would include "an absolute iron commitment to fiscal responsibility", with accompanying forecasts from the Office of Budget Responsibility (OBR).

While Mr Kwarteng had some support from his backbenchers, he was issued warnings too - including from former Northern Ireland secretary Julian Smith, asking him to ensure he will "not balance the forthcoming tax cuts on the back of the poorest people in the country".

And chair of the Treasury Select Committee, Mel Stride, told the chancellor to make sure he "reaches out as much as he can" to all sides of the Commons to get his measures through, adding: "Any failure to do so will unsettle the markets."

Last month's mini-budget from the new government - released without OBR forecasts alongside it - sent the markets into turmoil, with the pound dropping, mortgage products being withdrawn and the Bank of England having to step in to save some pension funds.

Prime Minister Liz Truss and Mr Kwarteng were forced into a U-turn over their plan to scrap the 45p tax rate for the highest earners, and to bring forward the medium-term announcement that had been set for the end of November.

But the economic warnings keep coming, with the Institute for Fiscal Studies (IFS) saying the chancellor would have to cut spending or raise taxes by £62bn if he is to stabilise or reduce the national debt, and the International Monetary Fund (IMF) saying the government needed to work with the Bank of England to prevent any further troubles.

Speaking during Treasury questions after shouts from some MPs to "resign", the chancellor insisted he would "canvass opinion widely ahead of the publication of the plan" and that the OBR's independence was "absolutely sacrosanct".

But Labour's shadow chancellor Rachel Reeves called on Mr Kwarteng to "put aside his pride, do the right thing for our country, end this trickle-down nonsense and reverse the budget".

She added: "The chancellor is in a dangerous state of denial but the cost of these mistakes are all too real for everyone else - borrowing costs up, growth down, mortgage payments set to increase by £500 a month.

"Now they scrabble around looking for cuts, hitting the most vulnerable and hitting our public services. It does not need to be this way."

Mr Kwarteng was also pushed by a number of MPs to reveal whether the government would be raising benefits in line with inflation as Boris Johnson's government promised to do, which has led to rows within the Tory Party.

Liberal Democrat Jamie Stone told the chancellor it was the "only fair way forward" and it would be "immoral to do otherwise".

But the chancellor would not reveal the decision, saying he will not "prejudge any measures" to be announced on Halloween.

Newsletter

Related Articles

0:00
0:00
Close
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
US Justice Department Launches Criminal Mortgage-Fraud Probe into Federal Reserve Governor Lisa Cook
Escalating Drug Trafficking and Violence in Latin America: A Growing Crisis
US and Taiwanese Defence Officials Held Secret Talks in Alaska
Report: Secret SEAL Team 6 Mission in North Korea Ordered by Trump in 2019 Ended in Failure
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Florida Murder Case: The Adelson Family, the Killing of Dan Markel, and the Trial of Donna Adelson
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Brand-New $1 Million Yacht Sinks Just Fifteen Minutes After Maiden Launch in Turkey
Here’s What the FBI Seized in John Bolton Raid — and the Legal Risks He Faces
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Queen Camilla’s Teenage Courage: Fended Off Attempted Assault on London Train, New Biography Reveals
Scottish Brothers Set Record in Historic Pacific Row
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
×