London Daily

Focus on the big picture.
Sunday, Jan 18, 2026

UK Finance Minister Devises "Credible Plan" To Reduce Debt

UK Finance Minister Devises "Credible Plan" To Reduce Debt

Last month's controversial tax-slashing plans, which will dramatically increase government borrowing, went further than many expected.

Britain's under-fire finance minister Kwasi Kwarteng has promised to unveil "a credible plan" to lower government debt as he defended his contentious mini-budget that led to market turmoil.

Last month's controversial tax-slashing plans, which will dramatically increase government borrowing, went further than many expected, abolishing the top rate of income tax and lifting a cap on bankers' bonuses.

It led to immediate upset in the financial markets, with the pound dropping to its lowest ever level against the dollar.

Kwarteng insisted his ministry will next month unveil a "medium-term fiscal plan" that will set out a path to reducing borrowing, alongside "new fiscal rules and a commitment to spending discipline".

In an article for the Daily Telegraph published late Friday, he noted a full forecast from the country's fiscal watchdog, the Office for Budget Responsibility (OBR), would also accompany the plan on November 23.

The lack of an OBR forecast has been cited as one of the reasons for the market tumult that followed the September 23 release of the mini-budget, which cut taxes for the wealthiest amid a cost-of-living crisis.

The turmoil forced the Bank of England to make an emergency intervention to stabilise the situation, amid fears of a collapse in UK pension funds.

Opposition politicians, independent analysts and even some Tory lawmakers have assailed the plans as reckless and counter-productive.

But Kwarteng has insisted the package is essential to return the UK, which is tipped to fall into recession imminently, to economic growth.

"Not all the measures we announced last week will be universally popular. But we had to do something different. We had no other choice," he reiterated in his Telegraph article.

'Iron grip'


However at the same time the article was published online, the S&P ratings agency said it had revised its outlook for the UK from "stable" to "negative" following the fallout from the mini-budget.

It cited the risk that "the UK's economic growth turns out weaker due to further deterioration of the economic environment, or if the government's borrowing costs increase more than expected".

It comes days after rival ratings agency Moody's warned that Kwarteng's fiscal strategy was "credit negative" and could "permanently weaken the UK's debt affordability".

Prime Minister Liz Truss has also faced searing criticism over the economic package.

After nearly a week of silence, she faced a gruelling round of BBC radio and regional television interviews Thursday, before penning her own newspaper article in The Sun published overnight.

In it, she conceded for the first time that the plans had prompted "short-term disruption", but vowed to press on with them and handle public money with "an iron grip".

A poll Friday found half of Britons think she should resign -- less than four weeks after taking office -- while support for the mini-budget has been in the single digits in some surveys.

Newsletter

Related Articles

0:00
0:00
Close
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
×