London Daily

Focus on the big picture.
Friday, Jun 26, 2026

Tory conference: We must stay the course, insists Chancellor Kwasi Kwarteng

Tory conference: We must stay the course, insists Chancellor Kwasi Kwarteng

Kwasi Kwarteng will use his Conservative conference speech to insist the government will "stay the course" on his tax-cutting growth plan.

The chancellor's approach has sparked market turmoil and disquiet among some Conservative MPs, but he will argue his plan is "the right one".

He will warn that, without action, the country is heading for "slow decline".

Mr Kwarteng is under pressure after a backlash against his mini-budget, unveiled on 23 September.

Polling expert Sir John Curtice says the mini-budget may have done permanent damage to the Conservative Party's reputation for economic competence and may well cost the party the next general election.

But Mr Kwarteng and Prime Minister Liz Truss have doubled down on their claim that their plan is the only way to rescue the UK from economic decline.

Ms Truss told the BBC's Laura Kuenssberg she should have "laid the ground better" for the tax changes and government borrowing that will fund them.

But she stood by the decision to "act quickly" and promised to win over the "hearts and minds" of MPs in her own party who opposed the measures.

Former cabinet minister Michael Gove told Laura Kuenssberg that cutting the top rate of income tax "at a time when people are suffering" was wrong and that using borrowed money to fund tax cuts was "not Conservative".

Grant Shapps, another former minister who supported Rishi Sunak in the Tory leadership contest, told the BBC's political editor Chris Mason the 45% top rate cut would be rejected by MPs when they vote on it in the spring and she should do a U-turn now.

But in his first speech to a Conservative conference as chancellor, Mr Kwarteng will defend the changes.

"We must face up to the facts that for too long our economy has not grown enough," he will tell the audience in Birmingham.

"I refuse to accept that it is somehow Britain's destiny to fall into middle income status… or that the tax burden reaching a 70-year-high is somehow inevitable.

"It isn't, and shouldn't be."

He will argue he has a "new approach" focused on raising economic growth, which would create "higher wages, more jobs and crucially, revenue to fund our precious public services".

In a response to criticism that the government's tax and spend plans do not add up, he will say that his measures will be "backed by an iron-clad commitment to fiscal discipline".

"We will show that our plan is sound, credible and will increase growth."

He will also reiterate his aim for the UK to hit 2.5% annual growth, saying: "We did it before. We can do it again."

Last week figures from the Office for National Statistics found that the UK's economy grew by 0.2% between April and June.

Mr Kwarteng's £45bn package includes a cut the basic rate of income tax to 19% from April 2023 as well as scrapping the 45% higher rate of income tax for England, Wales and Northern Ireland taxpayers.

The government predicts its two-year scheme to freeze energy prices would cost £60bn in the first six months.

Concern about how the package would be paid for was heightened by the Treasury's failure to publish an assessment by the independent spending watchdog the Office for Budget Responsibility (OBR) - and by Mr Kwarteng's suggestion that more tax cuts could come.

In the days following the chancellor's announcement, the cost of government borrowing rose, forcing the Bank of England to make a £65bn intervention.

Mr Kwarteng is due to set out further details of his economic plan on 23 November, along with a forecast by the OBR.


Michael Gove: Cutting tax for the wealthiest "a display of the wrong values"


Newsletter

Related Articles

0:00
0:00
Close
UK Government Launches Review of Voluntary National Insurance Contributions System
UK Planning Inspectorate Reports Key Infrastructure and Planning Milestones in Annual Review
UK Government Reviews Travel Expense Reimbursement Rates for Employers and Employees
Civil Nuclear Constabulary Launches National Digital Memorial for Officers Killed in Service
UK and US Expand Collaboration on Nuclear Fusion Research and Workforce Exchange
Environment Agency Secures £275,000 Enforcement Deal with Anglian Water Over Permit Breaches
Independent Inspector Flags Ongoing Failures in UK Home Office Border Case Management
UK Government Considers Zero VAT Rate on Land for Social Housing Development
Bank of England Reports Sharp Drop in Emissions and Warns on Climate-Driven Financial Risk
Consumer Confidence in the UK Falls at Fastest Quarterly Rate Since 2022
UK Borrowing Costs Rise Sharply on Gilt Markets Amid Fiscal and Political Concerns
UK Government Plans Legislation to Bring British Steel into Public Ownership
UK Government Secures £210 Million Nuclear Fuel Deal to Support Ukraine Energy Security
London Ambulance Service Reports Record Emergency Call Volume Amid Severe Heatwave
United Kingdom Faces Record June Heatwave as Temperatures Hit 36.7°C in Somerset
UK Financial Services Reform Debate Intensifies Over Ministerial Regulatory Powers
UK Energy Price Cap Rise Expected to Keep Inflation Above Target Through 2026
UK Biohacking and AI Wellness Trends Drive Surge in Personal Health Monitoring
UK Social Care Sector Sees Workforce Shift as Overseas Recruitment Masks Domestic Labour Decline
Nuffield Trust Warns UK Health Budgets Remain Vulnerable Despite Record Spending Levels
UK Coal Pension Surplus Debate Returns to Parliament as Reform UK MP Seeks Clarity on Distribution
UK MPs Consider E-Petition Calling for NHS Newborn Screening for Spinal Muscular Atrophy
UK Parliament Debates E-Petition Calling for Inquiry Into Pro-Israel Influence in Politics
UK Economy Grew 0.6 Percent in Q1 2026 but Business Sentiment Weakens Over Geopolitical Risks
UK Financial Services Bill Enters Lords Committee Stage With Expanded Ministerial Powers
UK Armed Forces Bill Advances With Plans for Defence Housing Service and Drone Defence Measures
UK Treasury Proposes Higher Electricity Generator Levy and Updated Mileage Allowance Rules
UK Parliament Debates Health Bill Amid Persistent GP Access and Patient Satisfaction Concerns
UK Financial Sanctions Regulator Signals Faster, Intelligence-Led Enforcement Strategy
British Chambers of Commerce Warns Business Confidence Crisis Is Dampening UK Investment
UK Parliament Debates Carbon Budget Order as Pressure Mounts on Net Zero Delivery
UK Energy Price Volatility Reinforces Pressure for Faster Electrification of Economy
UK Defence and Aerospace Strategy Gains Momentum as Keir Starmer Pushes Industrial Cooperation in Berlin
Department for Environment, Food and Rural Affairs Unveils £53 Million Investment in Farming Innovation
Foreign Secretary Announces Medical Evacuations and University Support for Palestinians in Gaza
Government-Commissioned Report Highlights Economic Exposure to Climate-Driven Fossil Fuel Price Shocks
Climate Change Committee Warns UK Is Off Track on Emissions Cuts and Calls for Faster Decarbonisation
Prime Minister Keir Starmer Calls for Deeper UK-EU Defence and Industrial Cooperation in Berlin Address
Met Office Issues Red Extreme Heat Warning as Temperatures Set to Surpass 37°C in England and Wales
Bank of England Holds Interest Rates at 3.75% as Inflation Outlook Remains Uncertain
UK Announces New Military Infrastructure at Catterick to Support Engineer Regiment Relocation
University of Reading Ranked Among Top 100 Globally for Sustainability Impact
UK Launches Counter-Fraud Taskforce to Investigate Covid Loan Scams
UK Government Introduces Customs and Tax Reforms to Support High Street Retailers
Jonathan Haskel Nominated as Chair of the UK Office for Budget Responsibility
UK Government Expands Powers to Recover Benefit Debt and Tackle Welfare Fraud
Labour Party Leadership Contest Intensifies as Andy Burnham and Ed Miliband Clash Over Economic Direction
Rail Operators Urge Essential Travel Only as Extreme Heat Threatens UK Network Stability
United Kingdom Issues Red Extreme Heat Warning as Temperatures Forecast to Reach 38°C
Keir Starmer Announces Resignation as UK Prime Minister Amid Deepening Political Instability
×