London Daily

Focus on the big picture.
Sunday, May 11, 2025

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
Trump fires director of U.S. Copyright Office, sources say
Retired British police officer arrested over ‘thought crime’ tweet
Cardinal Robert Prevost Elected as Pope Leo XIV, Marking a Historic Papacy
Newark Mayor Ras Baraka Arrested at ICE Facility Amid Congressional Visit
India-Pakistan conflict may be first test for Chinese military tech
Bill Gates Announces Plan to Wind Down Philanthropic Foundation and Disperse Wealth
Historic Papal Conclave Set to Commence in Rome
Huge Copper, Gold, and Silver Discovery in Argentina and Chile — But the Profits Go Abroad
Prince Harry is pleading for reconciliation — but the royals are just as sick of his victimhood as everyone else
The Road to Freedom: She Protested Putin, Escaped House Arrest, and Survived a 2,800-Kilometer Journey
OpenAI's Flip-Flop: No Longer Going Commercial, Back to Nonprofit, After Musk Lawsuit and Backlash
“Trump Supporter” Aims to Bring a MAGA-Style Shift to Romania
First From China: Zhao Xintong Wins the Snooker World Championship
Nvidia Faces Billion-Dollar Losses – Warns: China Is on Its Way to Becoming an AI Superpower
Trump Rules Out Third Term, Names JD Vance and Marco Rubio as Potential Successors
Mexico Says ‘No’ to U.S. Troops: President Sheinbaum Rejects Trump’s Offer to Fight Cartels
Nigel Farage’s Reform UK Storms the Map, Wrecking the Two-Party Monopoly
DOGE: Reimagining Government Operations with AI
Common Sense Returns to Britain's Legal System: UK Supreme Court Declares a Woman Is… a Woman
Beijing Says U.S. Is ‘Reaching Out’ for Tariff Talks Amid Soaring Trade Tensions
U.K. Court Rejects Prince Harry’s Final Appeal Over Police Security
Prince Harry’s Heartfelt Outburst Rocks the Royal Family
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Transgender Swimmer Secures Five Gold Medals at U.S. Masters Championship
Prince Harry: “I Want Reconciliation with My Family”
Germany's Alternative für Deutschland (AfD) party has now been officially labeled “right-wing extremist” by the federal office for the so-called “protection of the constitution.”
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
Transformative Changes in Women's Wrestling: The Rise of WWE Superstars
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
This is a day in Spain without electricity and internet
Reform UK Surprises in British Elections, Challenging Traditional Two-Party System
180-Year-Old Christian University in South Carolina Announces Closure Due to Unmet $6 Million Fundraising Goal
Brazilian Woman Jailed for Fourteen Years for Writing “You Lost, Idiot” on Statue During Protest
Trump Administration Removes National Security Adviser Mike Waltz Amid Signal Chat Controversy
Dutch Politician Eva Vlaardingerbroek Receives Spyware Threat Alert from Apple
Paramount Board Considers Settlement in Trump’s $20 Billion Lawsuit Over "60 Minutes" Interview
U.S. Economy Shrink in Trump’s First Quarter as Tariff Policy Raises Questions
Deadline Looms for RTS Meter Replacement: Hundreds of Thousands at Risk of Heating Disruption
Sweden Grapples with Deadly Gun Violence: Suspect Arrested After Three Young Men Killed in Uppsala Hair Salon
Walz Reveals Why Harris Chose Him as Her Running Mate and Reflects on Democratic Losses
Spain Restores Power After Unprecedented Nationwide Blackout
Carney Secures Liberal Mandate in Canada’s Federal Election
Death Penalty Sought as Luigi Manion Pleads Not Guilty in CEO Murder Case
President Trump contacts Jeff Bezos after reports of Amazon considering listing tariff surcharges; company clarifies no such plan for main platform
Spain and Portugal Recover from Massive Blackout
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Singapore Politicians Warn Against Foreign Interference in Election
Driver Ploughs into Vancouver Festival Crowd, Killing Nine
Depression, Fear of Defamation, and a Tragic End: New Details on Virginia Giuffre’s Suicide
“Sharia for UK, Allah Akbar!”
×