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%, unveiled at the mini-budget 10 days ago.
And after his speech, it was revealed Mr Kwarteng is bringing forward his medium-term financial statement from 23 November to this month, despite this morning saying he would not.
He admitted to Tory members 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.
So much left unsaid
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 £45bn 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”.
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Most bizarre speech I’ve ever heard
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.”
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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”.
Liz Truss, flanked by deputy PM Therese Coffey and Chancellor of the Duchy of Lancaster Nadhim Zahawi applauded the chancellor’s speech
Sarah Olney, the Lib Dem’s Treasury spokeswoman, said Mr Kwarteng’s speech will bring “cold comfort” to struggling households.
Israel pounded the outskirts of Gaza City overnight, as Benjamin Netanyahu’s government vowed to press on with a planned offensive on the city.
Families streamed out of the city as the explosions hit.
“I stopped counting the times I had to take my wife and three daughters and leave my home in Gaza City,” said Mohammad, 40.
“No place is safe, but I can’t take the risk. If they suddenly begin the invasion, they will use heavy fire.”
Mahmoud Abedrabo mourns over the body of his son Hamada in Gaza City on 24 August. Pic: Reuters
Others said they would prefer to die and not leave.
“We are not leaving, let them bomb us at home,” said Aya, 31, who has a family of eight, adding that they couldn’t afford to buy a tent or pay for the transportation.
“We are hungry, afraid and don’t have money,” she said.
Mourners pray next to the body of Palestinian boy Hamada Abedrabo on 24 August. Pic: Reuters
Witnesses said that overnight they heard nonstop explosions in Zeitoun and Shejaia.
Tanks shelled houses and roads in Sabra, and buildings were blown up in Jabalia.
On Sunday, the IDF said its forces had returned to combat in Jabalia to strengthen its control of the area and dismantle militant tunnels.
Smoke rises following an Israeli strike in Gaza City. Pic: Reuters
It added that the operation there “enables the expansion of combat into additional areas and prevents Hamas terrorists from returning to operate in these areas.”
This month, Israel approved a plan to seize control of Gaza City. The offensive isn’t expected to start for another few weeks.
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In the meantime, mediators in Egypt and Qatar are trying to resume ceasefire talks between the two sides.
On Friday, Israel’s defence minister Israel Katz said that Gaza City will be razed unless Hamas releases all its remaining hostages and ends the war on Israel’s terms.
Mourners transport the body of Ahmed Balata on 24 August. Pic: Reuters
Around half of Gaza’s two million residents currently live in the city and on Friday a global hunger monitor said that Gaza City and its surrounding areas are officially suffering from famine that will likely spread.
Israel said the monitor ignores steps Israel has taken since late July to increase aid supplies into and across Gaza.
Eight more people died of malnutrition and starvation in Gaza, according to the Hamas-run Gaza health ministry on Saturday.
281 people, including 114 children, have now died of malnutrition and starvation since the war started, according to the ministry.
The war began on 7 October 2023, when Hamas-led gunmen killed around 1,200 people in southern Israel, mainly civilians, and took 251 hostages.
Since then, Israel has killed at least 62,000 Palestinians, according to the Gaza health ministry, and internally displaced nearly its entire population.
Two married couples have died after a British car veered off the road and crashed in Germany, according to police.
The fatal accident happened shortly after midnight on Saturday in the trees near a highway in the Kassel district, north of Hesse in central Germany.
The 32-year-old male driver, a 31-year-old female passenger, a 32-year-old female passenger, and a 30-year-old female passenger all died at the scene, despite the efforts of German emergency services.
Sky News understands UK officials have not been contacted for assistance.
At roughly 12.30am on Saturday, the car appears to have veered off the road and crashed into nearby trees around 30m from the road, according to the Kassel police department.
Pic: Feuerwehr Reinhardshagen
One of the victim’s phones automatically alerted the emergency services to the incident, who sent an ambulance to the scene.
Soon, fire engines, ambulances, command vehicles and emergency support vehicles were all dispatched.
When emergency workers arrived, the car was lying on its side, wedged between several trees.
It wasn’t until they removed the roof that they found all four passengers.
Pic: Feuerwehr Reinhardshagen
The accident happened on Highway L3229
The emergency workers who dealt with the victims were immediately supported by the specialist mental health workers at the fire station in Reinhardshagen.
“This high number of deaths is an extraordinary operation for our Reinhardshagen Volunteer Fire Department,” said a fire department spokesperson.
“For some of the emergency personnel, it is the first time they have been confronted with death in this way.
“Therefore, a great deal is being done to help us process these images. We will also discuss this among ourselves and within families, because not everyone can easily shake off what they have seen.”
An investigation into the accident is ongoing and is being conducted by the Hofgeismar police station.
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