London Daily

Focus on the big picture.
Wednesday, Jun 17, 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
Government Advances New Airport Slot Rules to Ease Airline Operating Constraints
BBC Opens Flagship Science-Fiction Franchise to Competitive Production Bids
Chancellor Meets City Leaders Amid Concerns Over Gilt Market Liquidity
Rathbones Shares Fall Seventeen Percent After Regulatory Review Reveals Compliance Failings
United Kingdom Joins Group of Seven Initiative Using Artificial Intelligence and Quantum Computing for Cancer Research
Parliament Debates Doubling Tax Allowance for Pensioners After Major Public Petition
Measles Cases Exceed Seven Hundred in London and the West Midlands
British Military Leadership Faces Parliamentary Scrutiny After Defence Secretary's Sudden Resignation
House of Lords Begins Debate on Steel Industry Nationalisation Legislation
Parliament Advances Bill to Abolish NHS England and Create Single Patient Records
Parliament Fast-Tracks National Security Bill to Expand Powers Against Foreign Threats
United Kingdom and European Union Set July Summit to Deepen Post-Brexit Cooperation
United Kingdom Imposes Seventy New Sanctions on Russia and Expands Support for Ukraine's Nuclear Sector
United Kingdom Announces Social Media Ban for Children Under Sixteen
0British Government Investigates Reports of Russian Warship Firing Warning Shots Near Isle of Wight
UK Supreme Court Revises Legal Definition of Deprivation of Liberty
King’s Birthday Honours Recognise Contributions Across Science, Culture and Public Service
UK Ministry of Defence Reports Interdiction of Russian Shadow Fleet Vessel
UK and US Launch Joint Regulatory Programme for Medicines and Healthcare Products
Solicitor General Refers Murder Sentence to Court of Appeal Under Unduly Lenient Scheme
UK Launches £1.6 Million Mobile Museum Initiative to Expand Cultural Access
Judicial Pay Structure Undergoes Government Review Following Senior Recommendations
Government Confirms Nearly 180 New Youth Hubs Across the United Kingdom
UK Government Expands Careers Support Through Partnership with LinkedIn
Digital News Report Highlights Growing Global Concern Over AI and Information Overload
UK Chancellor Reaffirms Fiscal Discipline and Borrowing Reduction Strategy
UK Government Invests £219 Million in Sustainable Aviation Fuel Development
Rolls-Royce Small Modular Reactors Secures Major Swedish Export Contract
Government Confirms Locations for Nearly 180 Youth Hubs Across Great Britain
UK Government Partners with LinkedIn to Expand Employment Support Services
Reuters Institute Report Flags Rising Public Anxiety Over News and Information Overload
UK Government Commits £219 Million to Expand Sustainable Aviation Fuel Industry
Chancellor Convenes Market Engagement Group to Assess UK Economic Outlook and Productivity Risks
Rolls-Royce Wins Multibillion-Pound Swedish Contract for Small Modular Nuclear Reactors
Government to Ban Social Media Access for Under-Sixteens Across the United Kingdom
Government Approves Fast-Tracked Broadcast Merger Reshaping UK's Media Landscape
Resignation of Defence Secretary John Healey Triggers Debate Over UK Military Strategy
Britain Intensifies Diplomatic Efforts to Support US-Iran Ceasefire
Bank of England Faces Tough Interest Rate Choices After Economic Contraction
Belfast Sees Second Day of Anti-Migrant Riots as Police Deploy Water Cannons
UK Economy Shrinks in April as Energy Price Shocks Weigh on Growth
UK to Ban Social Media Access for Children Under 16 From 2027
UK Parliament Opens Week of Fast-Tracked Security and Infrastructure Legislation
Northern Ireland Projects £21 Million Boost From Major Cultural and Sporting Events
UK and Japan Sign Technology Security Pact to Strengthen AI and Supply Chain Cooperation
UK Welcomes US-Iran Peace Breakthrough Aimed at Restoring Strait of Hormuz Shipping
British Forces Intercept Russian Shadow Fleet Oil Tanker in English Channel Sanctions Operation
UK to Ban Social Media for Under-16s Under Landmark Online Safety Expansion
Anti-Immigrant Riots Spread Across Belfast, Raising Security Concerns
Ministry of Defence Opens Europe's Largest Drone Testing Facility in Swindon
×