London Daily

Focus on the big picture.
Friday, Sep 25, 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
Vistry Cuts Profit Outlook as Losses Deepen and Private Home Sales Weaken
Reported Assaults on Great Britain’s Railways Rise Sharply
Far-Right Activist Daniel Thomas Arrested After Channel Dinghy Slashing
Ukrainians in Britain Face Greater Homelessness Risk as Host Payments Are Cut
Scottish Drug Deaths Rise as Synthetic Opioids Spread
UK Diesel Prices Approach Record High as Energy Costs Intensify
UK Food and Drink Trade Deficit Widens to Record £21 Billion
Britain’s Largest Planned AI Supercomputer Delayed by Power Grid Constraints
NHS Boards Impose Minimum Waits of Up to Two Years for ADHD and Autism Assessments
Police Arrest Far-Right Activist After Migrant Dinghy Slashed in English Channel
Synthetic Opioids Drive Renewed Rise in Scotland’s Drug Deaths
Reported Assaults on Britain’s Railways Rise 20% in a Year
Vistry Cuts Profit Forecast as Losses Weigh on UK Housebuilder
TikTok Drops Appeal and Accepts £12.7 Million UK Data Protection Fine
Russell Group Urges UK Government to Drop Proposed International Student Levy
Legal & General Plans to Cut 1,000 Jobs by Mid-2027
UK Health Bill Would Remove Independent Governors From NHS Foundation Trusts
BMA Raises Patient Safety Concerns Over Advanced Practitioners Filling Doctor Rotas
UK’s Largest AI Supercomputer Delayed by Power Supply Constraints
NHS Orders Security Cameras in Neonatal Units Following Thirlwall Inquiry
Post-Brexit Trade Barriers Cost UK Economy Up to £6.5 Billion a Year, Analysis Says
UK Parliament Launches Inquiry Into Bank of England Monetary Policy Independence
Global Bond Selloff and Higher Oil Prices Narrow UK Budget Options
UK Prime Minister Andy Burnham Addresses UN and Holds First Meeting With Donald Trump
Royal Navy Commandos Complete Maritime Operations Training With US Navy SEALs
Vistry Profit Warning Adds to Concerns Over UK Housebuilding Conditions
UK Commits £343 Million to Major Expansion of Community Mental Health Services
Five Eyes Partners Back UK-Led Campaign Against Global Fraud Networks
UK Businesses Gain Full Access to £13 Trillion CPTPP Trading Bloc
UK Allocates Nearly £10 Billion for Council, Social and Affordable Housing
Chancellor John Healey Unveils Deregulation Drive to Accelerate UK Investment and Growth
Prime Minister Andy Burnham Sets Out Post-Brexit Foreign Policy Vision at United Nations
UK Reassesses Chagos Arrangements as Burnham Seeks New Path on Diego Garcia
Key Trends to Watch
Government’s “Buy British” Procurement Push Targets More Domestic Jobs and Industrial Capacity
Scotland Launches Four-Year Flood Resilience Programme With New Community Funding
Low-Income Renters Face Record Gap Between Housing Support and Private Rents
UK and US Test Torpedo Launch From British Undersea Drone in Defence Technology Milestone
Britain Pushes Artificial Intelligence Security Onto United Nations Security Council Agenda
Treasury Committee Defends Office for Budget Responsibility Independence Amid Fiscal Pressure
Scotland Records Eleven Per Cent Rise in Drug-Use Deaths as Cocaine and Nitazenes Drive Concern
Welsh Government Sets Four-Year Programme Around Health, Living Costs, Jobs and Housing
Study Finds Most People With High Blood Pressure in England Remain Undiagnosed
Britain Plans First National Workplace Health System to Tackle Economic Inactivity
England to Introduce Vocational GCSEs in Major Secondary Education Reform
UK Elevates Climate and Nature Risks to National Security Priority
Andy Burnham and Donald Trump Put Trade at Centre of First Major Bilateral Meeting
Andy Burnham and Ursula von der Leyen Push Ahead With Closer UK-European Union Economic Ties
UK Government Borrowing Jumps to Eighteen Point Three Billion Pounds Ahead of October Budget
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
×