London Daily

Focus on the big picture.
Monday, Mar 16, 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
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
AI-Generated Singer Becomes Viral Voice for Iranians With New Anthem
London Private Club Founder Plans Exclusive Palm Beach Venue Near Trump’s Mar-a-Lago
Ed Davey Urges Britain to Build Fully Independent Nuclear Missile Capability
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
US Treasury Links British Polo Patrons to Alleged Venezuelan Oil Proceeds Laundering Scheme
Hundreds Gather in London Despite Ban on Annual Pro-Palestinian March
Two Dead and Multiple Students Seriously Ill After Invasive Meningitis Outbreak at UK University
UK Considers Deploying Ships and Mine-Hunting Drones to Reopen Strait of Hormuz
Starmer and Trump Discuss Urgent Need to Reopen Strait of Hormuz Amid Escalating Iran Conflict
Prince Harry and Meghan Markle’s Planned Australia Visit Draws Mixed Reaction From Local Communities
Trump Calls on France and UK to Help Safeguard Strait of Hormuz Shipping Route
Boris Johnson Labels Bitcoin a ‘Ponzi Scheme’, Sparking Debate in Crypto World
UK Considers Targeted Aid for Vulnerable Households as Energy Costs Rise
Stellantis Urges Immediate Review of UK Electric Vehicle Sales Targets
Home Office Reverses Course to Allow Some Dual Nationals to Enter UK Using EU Passports
Reform UK Proposes Replacing Top Civil Servants With Officials Aligned to Government Agenda
Netflix Adds Critically Acclaimed ‘Best Film of 2025’ With Perfect Rotten Tomatoes Score
‘The Sums Don’t Add Up’: UK Farmers Hit by Soaring Costs as Iran War Disrupts Global Supplies
Confidential UK Biobank Health Records Found Online After Researchers Accidentally Expose Data
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
×