‘True’ that government tax cuts benefit the wealthiest, says finance minister Chris Philp
A government minister has accepted that scrapping the top rate of income tax would benefit only the wealthy.
Speaking to Sky News, the chief secretary to the Treasury Chris Philp said it was “true” that getting rid of the 45p rate would only help the better off.
But he claimed it was “very often those are people who are internationally mobile – they can choose where to locate people… and we want those people to locate here in the UK”.
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He was speaking ahead of Prime Minister Liz Truss’s first public comments since the mini-budget market chaos, in which she defended her government’s policies, insisting it had “done the right thing” in order to get the economy growing.
Mr Philp also said he “respectfully disagrees” with the IMF, which had said the government’s economic plan would create more inequality in the UK.
His comments follow turmoil in the markets after the statement to the Commons on Friday by the chancellor Kwasi Kwarteng.
The “fiscal event” included tax cuts, such as scrapping the 44p rate for those earning over £150,000, reducing the basic rate of income tax by 1p and cancelling the planned increase to corporation tax.
But it sent the economy into a spin as economists worried about the levels of borrowing the Treasury was committing to.
On Wednesday, the Bank of England was forced to intervene, launching an emergency government bond-buying programme to prevent borrowing costs from spiralling out of control and stave off a “material risk to UK financial stability”.
Asked whether the government had made any mistakes, Mr Philp said “no one’s perfect”, but he added: “I’m not going to sort of apologise for having a plan to grow the UK’s economy.”
He also defended Mr Kwarteng, who has been facing criticism, not just from economists – including Ms Truss’s own external adviser, Gerard Lyons – but from Tory MPs too.
“The chancellor is in constant contact with the markets,” he said. “He’s meeting the governor of the Bank of England on a very regular basis.”
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‘Amateur bunch need to get back to their offices’
The government is facing demands from opposition parties to recall parliament from its conference recess to deal with the economic problems.
At the end of his party’s conference on Wednesday, the Labour leader Sir Keir Starmer called on Mr Kwarteng to reverse Friday’s announcements “before any more damage is done”, telling Sky News that Ms Truss was a “danger” to the economy.
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The Liberal Democrat leader Sir Ed Davey also told Sky News that it was “a totally unnecessary crisis… caused by the incompetence of this Conservative government” and the Tories should cancel their upcoming conference.
He said Mr Philp was “was blaming everyone else but the government and no one believes him – no one believes this Conservative government anymore. They’ve lost total credibility.”
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Sir Ed added: “It is no good Conservative ministers going off to their conference next week, going to their cocktail parties, quaffing champagne while the country is in crisis.
“Liz Truss, Kwasi Kwarteng and the rest of this amateur bunch need to get back to their offices, stop their conference and sort this mess out – come to parliament and be held accountable.”
Palestine Action can still challenge the decision to ban the group under anti-terror laws after the government lost an appeal.
The group was “proscribed” in July, making it illegal to show any support or affiliation for it, following incidents that included breaking in to an RAF base.
The Home Office appealed after a court granted the group’s co-founder a judicial review and said the ban disproportionately interfered with freedom of speech and assembly.
A woman is led away by police during Palestine Action protest on 6 September. Pic: PA
It said the government should also have consulted the group first.
Despite the ban, nearly 900 supporters were arrested at a single protest in London last month.
The judicial review of the ban was scheduled to begin on 25 November and Friday’s Court of Appeal decision means it can still go ahead.
Palestine Action called it a “landmark victory” and said co-founder Huda Ammori had also been granted permission to appeal on two further grounds.
Reacting after the court’s decision, Ms Ammori called the ban “absurdly authoritarian” and “one of the most extreme attacks on civil liberties in recent British history”.
She said 2,000 people had been arrested since it was outlawed and arresting “peaceful protesters” under the Terrorism Act was a misuse of resources.
The group’s vandalising of aircraft at Brize Norton in June – with two activists reportedly entering on electric scooters – prompted a security review of UK defence sites.
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Supporters of the group vandalised aircraft at RAF Brize Norton in June
Its supporters have carried out numerous protests in the UK, with many involving vandalism and violence.
Last year, it smashed windows and sprayed red paint on Barclays branches and this summer vandalised a Bristol defence technology firm, allegedly assaulting staff and police.
Multiple rallies for the group have taken place in London since July’s ban, with hundreds detained for showing support.
A protest at the start of this month saw another 492 people arrested despite calls for the event to be scrapped after the Manchester synagogue terror attack.
The King will become the first British monarch to pray publicly with the Pope since the Reformation 500 years ago during a state visit to the Holy See next week.
The King and Queen will meet the new pontiff Pope Leo XIV at the Apostolic Palace, his official residence, next Thursday during their trip to Vatican City.
In a highly significant moment in relations between the Catholic Church and Church of England, of which His Majesty is Supreme Governor, the King and Queen and the Pope will attend a special ecumenical service in the Sistine Chapel celebrating the ongoing work towards unity and cooperation among different Christian churches.
The decision for the King and Pope to pray together during the service will be the first time a monarch and the pontiff have joined together in this type of moment of reflection in the 500 years since the Reformation when, in 1534, King Henry VIII declared himself as head of the Church of England and broke from the papal authority of the Rome Catholic Church.
In another historic step, the King will be made “Royal Confrater” of the Abbey of St Paul’s Outside the Walls.
The abbot of the community and the archpriest of the basilica wished to confer the title and received the Pope’s approval to do so. To mark the occasion a special seat has been made decorated with the King’s coat of arms.
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The King will use it during the service, after which it will remain in the apse of the basilica for future use by His Majesty and his heirs and successors.
English Kings had a particular link with The Papal Basilica of St Paul’s Outside the Walls until the Reformation. It is also known as the Papal Basilica where reconciliation, ecumenism and relationships across the Christian faith are celebrated.
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King to pray with Pope
A spokesperson for the Church of England said: “The royal confrater title, whilst it confers no duties or obligations on the King, and makes no changes whatsoever to the formal, constitutional and ecclesiastical position of His Majesty as the Supreme Governor of the Church of England, it is a tribute to his majesty and his own work over many decades to find common ground between faiths and to bring people together.”
The trip comes during the Catholic Church’s 2025 Jubilee year. Held traditionally every 25 years, “Pilgrims of Hope” is the theme of this jubilee.
The King and Queen met the late Pope Francis in April. Pic: Reuters
The visit will also reflect the joint commitment from both Pope Leo and the King to protect nature and their shared concern for the environment. The service at the Sistine Chapel will have the theme of “Care for Creation” and they will attend a meeting on sustainability.
A spokesperson from the Foreign Office said: “At a time of growing instability and conflict, the UK’s relationship with the Holy See is more important than ever. The Holy See is a key international actor.
“We work with the Holy See to promote human dignity, to promote peace and combat climate change… so His Majesty’s visit will strengthen the UK’s relationship with this crucial and influential global partner.”
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Only in 1961 did Queen Elizabeth II became the first British monarch since the Reformation to make an official visit to the Holy See.
In April of this year, a royal visit had to be cancelled due to the ill health of Pope Francis, but both the King and Queen did meet him privately while on a trip to Rome. It is understood Pope Leo and the King have been actively engaged in how this reorganised visit will look and the themes it will cover.
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