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.
A police officer has been injured after a night of violent protests outside an asylum hotel in Dublin – with six arrests made.
Bricks were thrown and fireworks were discharged outside the Citywest Hotel – with glass bottles used as missiles and a police van set on fire.
A Garda helicopter was also targeted with lasers, and the police service says some of those on the streets were seen carrying garden forks.
Pic: PA
Pic: PA
Commissioner Justin Kelly added: “This was obviously not a peaceful protest. The actions this evening can only be described as thuggery. This was a mob intent on violence.
“We will now begin the process of identifying those who committed crimes and we will bring those involved in this violence to justice.”
It is the second night of demonstrations after an alleged sexual assault in its vicinity in the early hours of Monday morning.
Some of the crowd threw stones and other missiles at the public order officers as they moved the protesters back – and water cannon was deployed at the scene.
A line of officers was preventing the protesters from approaching the hotel.
Police officers block protesters outside the hotel. Pic: PA
‘Those involved will be brought to justice’
Ireland’s premier, Taoiseach Micheál Martin, paid tribute to the officers who were on the frontline of the protests.
“There can be no justification for the vile abuse against them, or the attempted assaults and attacks on members of the force that will shock all right-thinking people,” he said.
Justice minister Jim O’Callaghan said those involved in the violence will be brought to justice.
“The scenes of public disorder we have witnessed at Citywest must be condemned,” he said.
“People threw missiles at Gardai, threw fireworks at them and set a Garda vehicle on fire.
“This is unacceptable and will result in a forceful response from the Gardai.
“Those involved will be brought to justice.”
‘No excuse’ for violence
The minister said a man had been arrested and had appeared in court in relation to the alleged assault in the vicinity of the hotel.
He added: “While I am not in a position to comment any further on this criminal investigation, I have been advised that there is no ongoing threat to public safety in the area.”
He said attacks on officers would “not be tolerated”, adding: “Peaceful protest is a cornerstone of our democracy. Violence is not.
“There is no excuse for the scenes we have witnessed.”
The demonstration on Monday night passed without a significant incident.
It comes two years after anti-immigrant demonstrators triggered a major riot in the centre of Dublin after three young children were stabbed.
A police van has been set on fire and missiles have been thrown at officers as protesters gathered outside a hotel used to house asylum seekers in Dublin.
It is the second night of demonstrations outside the Citywest Hotel after an alleged sexual assault in its vicinity in the early hours of Monday morning.
A large crowd has gathered in the area and members of the Garda’s public order unit have been deployed.
Footage from the scene showed a Garda vehicle on fire as well as several protesters displaying Irish flags.
Many protesters carried Republic of Ireland flags
Some of the crowd threw stones and other missiles at the public order officers as they moved the protesters back.
A Garda helicopter hovered overhead and a water cannon was deployed on the scene.
Ireland’s justice minister, Jim O’Callaghan, said those involved will be brought to justice.
“The scenes of public disorder we have witnessed at Citywest tonight must be condemned,” he said.
“People threw missiles at Gardai, threw fireworks at them and set a Garda vehicle on fire.
“This is unacceptable and will result in a forceful response from the Gardai.
“Those involved will be brought to justice.”
The minister said a man had been arrested and had appeared in court in relation to the alleged assault in the vicinity of the hotel.
He added: “While I am not in a position to comment any further on this criminal investigation, I have been advised that there is no ongoing threat to public safety in the area.
He said attacks on gardai will “not be tolerated”, adding: “Peaceful protest is a cornerstone of our democracy. Violence is not.
“There is no excuse for the scenes we have witnessed tonight.”
It was the second night of protest outside the hotel, which is being used as state accommodation for people seeking international protection. The demonstration on Monday night passed without a significant incident.
It comes two years after anti-immigrant demonstrators triggered a major riot in the centre of Dublin after three young children were stabbed.
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There are no plans for Donald Trump and Vladimir Putin to meet in person in the near future, according to a White House official.
The presidents last week agreed to meet in Budapest after a phone call Mr Trump called “extremely frank and trustful”.
The US leader suggested it was possible it could happen within a fortnight, though no date was set.
However, it appears that’s now off the table – and there are fears the meeting could be shelved altogether due to Russia‘s rigid stance on the Ukraine war.
The White House official, speaking to Sky’s US partner network NBC, said secretary of state Marco Rubio and Russian foreign minister Sergei Lavrov had spoken on Tuesday.
The call was described as “productive” but the official added there was no plan for the presidents to meet “in the immediate future”.
The last Trump-Putin meeting was in Alaska in August, but it ended without any meaningful progress towards a ceasefire.
The Budapest plan was announced shortly before Ukrainian President Volodymyr Zelenskyy travelled to Washington last Friday to try to get approval for long-range Tomahawk missiles.
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Why Tomahawks are off the table
Mr Zelenskyy accused the Russian leader of acting out of fear Ukraine could get the green light and the ability to hit targets far deeper into Russia.
In his nightly address on Tuesday, he said Russia “almost automatically became less interested in diplomacy” after it became clear Mr Trump had backed away from any decision on the Tomahawks.
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Professor Michael Clarke answers your questions on the Ukraine war.
Two US officials told Reuters that plans for the Budapest meeting had stalled over Russia’s insistence any peace deal must give it control of all of the Donbas region.
Those terms are said to have been reiterated over the weekend in a private communique known as a “no paper”.
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The Kremlin’s refusal to budge effectively rejects Mr Trump’s latest assessment that the frontlines should be frozen as they are.
The president shifted position last week after previously telling the UN General Assembly that Ukraine could win back all the land it has lost.
Read more:
Putin’s ‘not so secret weapon’ | Ukraine war Q&A
UK ‘ready to spend over £100m’ on possibly sending troops to Ukraine
Ukraine and European nations issued a joint statement on Tuesday insisting “international borders must not be changed by force” and accusing Russia of “stalling tactics”.
But, in an apparent effort to keep the US leader onside, it added: “We strongly support President Trump’s position that the fighting should stop immediately, and that the current line of contact should be the starting point of negotiations.”
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Trump: ‘We can end this war quickly’
Kremlin spokesman Dmitry Peskov gave the impression his country was in no rush to arrange another Trump-Putin meeting, saying on Tuesday “preparation is needed, serious preparation”.
Such talk is likely to increase concerns Russia does not want to stop fighting and is “playing” President Trump – all while continuing to launch drone barrages at Ukrainian cities.
Russia currently holds about a fifth of Ukraine after its invasion in February in 2022. It also annexed the Crimean peninsula in 2014.
Meanwhile, NATO’s secretary general Mark Rutte is travelling to Washington to meet with President Trump on Wednesday.
He will “discuss various aspects related to NATO’s support to Ukraine and to the US-led efforts towards lasting peace”, an official for the alliance said.
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