London Daily

Focus on the big picture.
Wednesday, Jul 29, 2026

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without OBR forecasts alongside it - sent the markets into turmoil, with the pound dropping, mortgage products being withdrawn and the Bank of England having to step in to save some pension funds.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 says Israel ‘would not survive’ without US
France Evacuates Atlantic Coast Resorts as Wildfire Risk Rises Again
Magnitude 7.1 Earthquake Strikes Kumamoto as Rescuers Search Collapsed Buildings
OpenAI Faces Demands for Full Disclosure After Models Breach Hugging Face
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
Royal Collection Trust Income Falls as Palace Visits Retreat From Record Highs
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Ministers Examine Social-Care Levy as Burnham Seeks Funding Settlement
UK Attractions Sector Forecast to Add £587 Million in Visitor Spending
England Coast Path Extends With New Suffolk Estuary Walking Route
Attorney General Wins Longer Jail Term for Fatal Dangerous Driving Case
Andrew and Tristan Tate Remain in U.S. Custody Pending UK Extradition
Royal Fleet Auxiliary Workers Secure Above-Inflation Pay Deal
Prime Minister Seeks Cross-Party Agreement on Social Care Reform
Court Upholds Competition Ruling Against Drugmakers Over Hydrocortisone Prices
UK Unveils Major Technical Education Reform for Secondary Schools
UK Judge Rebukes Home Office Over AI-Generated Errors in Asylum Case
UK and Ukraine Agree to Share Electronic Warfare Technology
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Badenoch Offers Tory Votes to Keep Serious Offenders in Prison
Why Americans Queue for $15 Ice Cream and a $100 Caviar Pint
Another AI Genius Left the United States — and Silicon Valley Is Starting to Worry
Shein Reports $99mn Loss as Trade Barriers Test Low-Cost Model
CXMT Gains 466% in China’s Biggest IPO Since 2010
Amazon Seeks Approval for 5,105-Satellite Mobile Network
Burnham Puts School-to-Work Reform at Centre of Welfare Strategy
Johnson & Johnson Agrees to $5.5 Billion Talc Lawsuit Settlement
EU AI Act Shapes Global Corporate Standards, Study Finds
UK-Japan Relations Expected to Deepen Under Burnham Government
Burnham Signals Tough Decisions on Council Tax Reform
UK Inflation Slows to 2.6% in June
Bank of England Holds Interest Rates at 3.75%
Prime Minister Burnham Opens Talks With Business Leaders on Economic Growth
Government Launches 'Number Ten North' to Drive UK Devolution
Labour Regains Poll Lead After Burnham's First Weeks in Office
Prime Minister Burnham Rules Out Early UK General Election Before 2029
Burnham Rules Out Replacing Council Tax and Stamp Duty
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
The Burnham government is seeking to establish its credibility through ambitious social care reform while maintaining fiscal discipline and public confidence in the National Health Service. Labour's early improvement in opinion polls provides political momentum, but sustained support will depend on delivering tangible policy outcomes. Britain continues to reinforce its role in European security through long-term support for Ukraine, while climate-related risks, including increasingly severe wildfires across England and Scotland, are becoming a more prominent national resilience challenge alongside economic uncertainty.
United Kingdom Economy Remains Exposed to Global Energy Risks
Prime Minister Dismisses Calls for an Early General Election
Scottish Wildfires Continue to Stretch Emergency Services
United Kingdom Faces Rising Wildfire Risk as Heatwave Continues
Lower Oil Prices Ease Inflation Concerns and Support Financial Markets
Financial Conduct Authority Launches Consumer Campaign on Car Finance Compensation
Government Prioritises Employment Over Benefit Cuts in Welfare Reform Plans
Prime Minister Rules Out Sweeping Property Tax Changes Before Autumn Budget
AstraZeneca Beats Expectations as Cancer Medicines Drive Strong Profit Growth
Labour Regains Narrow Polling Lead After Burnham's First Week in Office
United Kingdom Reaffirms Long-Term Commitment to Ukraine Under Burnham Government
×