London Daily

Focus on the big picture.
Monday, Jun 23, 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without OBR forecasts alongside it - sent the markets into turmoil, with the pound dropping, mortgage products being withdrawn and the Bank of England having to step in to save some pension funds.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
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
×