Kwasi Kwarteng: What a day! Chancellor admits fiscal plan caused ‘a little turbulence’ but vows to plough on with economic plan
The chancellor has admitted it has been a tough day after he was forced to U-turn on cutting income tax for the rich.
Kwasi Kwarteng began his keynote speech at the Conservative Party conference by saying: “What a day, it has been tough but we need to focus on the job in hand.”
Just hours earlier he announced he was ditching plans to remove the 45p rate of income tax for the wealthiest 1%, announced at the mini-budget 10 days ago.
He admitted his economic plan had caused “a little turbulence” but continued to back his vision for growth, saying: “With economic growth, everybody benefits, and I mean, everybody.”
Chancellor vows ‘no more distractions’ – follow live updates from Birmingham
In his original speech, before the U-turn, he had been set to say the government must “stay the course”.
But after acknowledging the change briefly, he said the government was ploughing ahead with boosting economic growth across the UK.
“We need to move forward. No more distractions. We have a plan and we need to get on and deliver it. That is what the public expect from the government,” he told Tory members in Birmingham.
“We’ve done it before and we can do it again.”
The chancellor said the path the country was on was “unsustainable” and said “we had no choice, the price of inaction would have been far greater than the cost of the scheme”.
And he said his plan to cut taxes to boost growth “isn’t radical, isn’t irresponsible” and will put more money in people’s pockets.
Sky News’ deputy political editor Sam Coates said: “There was just so much not addressed so you were left thinking what was it he wanted people to take away from that?
“At this conference, they’re desperate to try to get some political credit for the £45 billion they’ve committed to spending.”
He added that the chancellor did not mention how the plan is fiscally responsible and if it is staying within their budget.
Coates also said one of the biggest political challenges over the next 18 months will be the consequence of higher interest rates but there was “not a word about that either”.
Labour MP Chris Bryant told Sky News he had “never heard such an uninspiring speech from a chancellor”.
“That’s the most extraordinary thing, condemning the fact that we have very low growth at the moment and that we’ve had had it for the last 12 years compared with the Labour years,” he added.
“He was complaining about the high tax rate, even though he’s voted for all the 15 rises in taxes over the last few years. It’s just the most bizarre speech I’ve ever heard.”
Liz Truss, flanked by deputy PM Therese Coffey and Chancellor of the Duchy of Lancaster Nadhim Zahawi applauded the chancellor’s speech
Shadow Chancellor Rachel Reeves said the speech showed the chancellor and government are “completely out of touch, with no understanding on its own appalling record on growth”.
She said the budget is “an economic crisis made in Downing Street, paid for by working people” and called for them to reverse the budget “and abandon their discredited, dangerous trickle down approach”.
Sarah Olney, the Lib Dem’s Treasury spokeswoman, said Mr Kwarteng’s speech will bring “cold comfort” to struggling households.
Donald Trump’s 25% tariffs on goods from Mexico and Canada have come into effect, as has an additional 10% on Chinese products, bringing the total import tax to 20%.
The US president confirmed the tariffs in a speech at the White House – and his announcement sent US and European stocks down sharply.
The tariffs will be felt heavily by US companies which have factories in Canada and Mexico, such as carmakers.
Mr Trump said: “They’re going to have a tariff. So what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs.”
There’s “no room left” for a deal that would see the tariffs shelved if fentanyl flowing into the US is curbed by its neighbours, he added.
Mexico and Canada face tariffs of 25%, with 10% for Canadian energy, the Trump administration confirmed.
And tariffs on Chinese imports have doubled, raising them from 10% to 20%.
Canada announced it would retaliate immediately, imposing 25% tariffs on US imports worth C$30bn (£16.3bn). It added the tariffs would be extended in 21 days to cover more US goods entering the country if the US did not lift its sanctions against Canada.
China also vowed to retaliate and reiterated its stance that the Trump administration was trying to “shift the blame” and
“bully” Beijing over fentanyl flows.
Please use Chrome browser for a more accessible video player
What is America’s trade position?
Mr Trump’s speech stoked fears of a trade war in North America, prompting a financial market sell-off.
Stock market indexes the Dow Jones Industrial Average and the Nasdaq Composite fell by 1.48% and 2.64% respectively on Monday.
The share prices for automobile companies including General Motors, which has significant truck production in Mexico, Automaker and Ford also fell.
👉 Follow Trump 100 on your podcast app 👈
Consumers in the US could see price hikes within days, an expert has said.
Gustavo Flores-Macias, a public policy professor at Cornell University, New York, said “the automobile sector, in particular, is likely to see considerable negative consequences”.
This is due to supply chains that “crisscross the three countries in the manufacturing process” and ” because of the expected increase in the price of vehicles, which can dampen demand,” he added.
Read more:
The effects of Trump trade tariffs explained
Trump hits out at Zelenskyy again
The Trump administration is gearing up to bring in other tariffs in the coming weeks.
On 2 April, reciprocal tariffs will take effect on all countries that impose duties on US products.
He is also considering 25% tariffs on goods from the EU “very soon” after claiming the bloc was created to “screw the United States”.
A truck has collided with a bus in southern Bolivia, killing at least 31 people, according to police – just two days after a deadly crash claimed at least 37 lives.
Officers said the bus rolled some 500m (1,640ft) down a ravine after the collision on Monday, which took place on the highway between Oruro, in the Bolivian Altiplano, and the highland mining city of Potosi.
The driver of the truck has been arrested, while the cause of the accident is under investigation.
Police spokesperson Limbert Choque said men and women were among the dead, and 22 people suffered injuries.
Rescue teams operating at the site of the crash. Pic: Bolivia’s attorney general/Reuters
Bolivia’s President, Luis Arce, expressed condolences for the victims on social media: “This unfortunate event must be investigated to establish responsibilities,” he said in a post on Facebook.
“We send our most sincere condolences to the bereaved families, wishing them the necessary strength to face these difficult times.”
The crash happened between Oruro and Potosi
On Saturday morning, a crash between two buses killed more than three dozen people in the same region.
It happened between Colchani and the city of Uyuni, a major tourist attraction and the world’s largest salt flat.
People stand near the wreckage of one of the two buses involved in a crash on Saturday. Pic: Reuters/Potosi Departmental Command
Coincidentally, one of the buses was heading to Oruro, where one of the most important carnival celebrations in Latin America is currently taking place.
Read more from Sky News:
Pope suffered ‘acute respiratory failure’
Drones weakening Russia’s combat ability
More than 30 people were also killed after a bus crash on 17 February.
In that crash, police said the driver appeared to have lost control of the vehicle, causing it to drop more than 800m (2,600ft) off a precipice in the southwestern area of Yocalla.
Bolivia’s mountainous, undermaintained and poorly supervised roads are some of the deadliest in the world, claiming an average 1,400 fatalities every year.
The Pope has had two episodes of “acute respiratory failure”, the Vatican has said.
The 88-year-old has been in hospital since 14 February with a severe respiratory infection that triggered other complications.
The Vatican said the respiratory failures were caused by “significant accumulation” of mucus in his lungs and a “bronchospasm”, akin to an asthma attack.
Doctors were then required to perform two bronchoscopies – a test which sees medics use a long, thin, telescope with a light to look into the lungs – to evaluate the Pope’s air passages, the statement said.
“In the afternoon, non-invasive mechanical ventilation was resumed,” the Vatican continued. “The Holy Father has always remained vigilant, oriented and collaborative. The prognosis remains reserved.”
Vatican sources said the situation had been calm this morning, before becoming worse this afternoon.
Please use Chrome browser for a more accessible video player
Behind the scenes at the Vatican
The respiratory issues the Pope suffered today are due to an ongoing infection rather than a new one but he is not out of danger, they added.
Asked if the Pope is in good spirits, they gave no answer. When asked if the Vatican’s apartment is getting ready to welcome Francis back, the source said it was too premature to discuss this.
His clinical picture remains complex, they said.
More from Sky News:
Artist found dead at his flat
Trump hits out at Zelenskyy again
Earlier on Monday, Pope Francis issued a written message after Vatican officials begged him to let his voice be heard following more than two weeks out of public view.
He thanked his doctors for their care and well-wishers for their prayers, before praying for peace in Ukraine and elsewhere.
“From here, war appears even more absurd,” he wrote.
People at a nightly rosary prayer for the Pope in St. Peter’s Square yesterday evening. Pic: AP
This has become the longest public absence of his 12-year papacy.
Cardinal Konrad Krajewski presided over the evening rosary prayer in St Peter’s Square on Sunday night.
“Let us pray together with the entire church for the health of the Holy Father Francis,” he said.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports11 months agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway