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.
World
Arrest warrants issued for Israeli PM Netanyahu and former defence secretary Gallant and senior Hamas commander over alleged war crimes
Arrest warrants have been issued for Israeli Prime Minister Benjamin Netanyahu, former defence secretary Yoav Gallant and a senior Hamas commander by the International Criminal Court (ICC).
The warrants against the senior Israeli figures are for alleged war crimes and crimes against humanity related to the war in Gaza that Israel launched following the 7 October attacks by Hamas.
The prime minister’s office said the warrants against him and Gallant were “anti-semitic” and said Israel “rejects with disgust the absurd and false actions”.
Another warrant was issued for the arrest of Hamas leader Mohammed Diab Ibrahim al Masri for alleged war crimes and crimes against humanity.
Al Masri, also known as Mohammed Deif, was the mastermind behind the 7 October attacks. It is unclear if he is still alive, following an airstrike that Israel claimed killed him earlier this year.
Neither Israel nor the US are members of the ICC. Israel has rejected the court’s jurisdiction and denies committing war crimes in Gaza.
US President Joe Biden described the warrants against Israeli leaders as “outrageous”, adding “whatever the ICC might imply, there is no equivalence – none – between Israel and Hamas”.
Former Israeli prime minister Naftali Bennett said the warrants for Netanyahu and Gallant were a “mark of shame” for the ICC.
The court originally said it was seeking arrest warrants for the three men in May for the alleged crimes and today announced that it had rejected challenges by Israel and issued warrants of arrest.
The new UK Labour government said in the summer it would not oppose the ICC’s right to issue the warrants.
Benjamin Netanyahu addresses the UN general assembly. Pic: Reuters
Warrants for Netanyahu and Gallant
In its update, the ICC said it found “reasonable grounds to believe” that Netanyahu and Gallant “bear criminal responsibility” for alleged crimes.
These, the court said, include “the war crime of starvation as a method of warfare; and the crimes against humanity of murder, persecution, and other inhumane acts”.
Netanyahu previously spoke of his “disgust” at the suggestion the ICC would seek an arrest warrant for him.
The Board of Deputies of British Jews said the ICC’s decision sent a “terrible message”.
“The court has minimised how Hamas fights – deliberately from within civilian infrastructure and cruelly using Palestinian civilians as human shields, tragically leading to many casualties,” the board said.
“Democratic governments, and people around the world, should consider how they would have responded to an October 7th perpetrated against their country, involving mass murder, rape, and hostage-taking.
“We should all be focused on defeating the Hamas terrorists, liberating the hostages, ensuring that civilians in Gaza receive all necessary aid and working towards a sustainable peace for Israelis and Palestinians to prevent these horrible conflicts in the future.
“The decision of the ICC is counter-productive in all these respects.”
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A video released by Hamas in 2005 shows a man identified as Mohammed Deif. Pic: AP
Warrant for Hamas leader
The ICC also said it has issued an arrest warrant for Hamas leader Al Masri, saying it has “reasonable grounds to believe” that he is responsible for crimes against humanity including murder, extermination, torture, rape, as well as war crimes including taking hostages.
Discussing the 7 October attacks, the court said: “In light of the coordinated killings of members of civilians at several separate locations, the Chamber also found that the conduct took place as part of a mass killing of members of the civilian population, and it therefore concluded that there are reasonable grounds to believe that the crime against humanity of extermination was committed.”
In its statement, the ICC said the prosecution was not in a position to determine whether Al Masri is dead or alive, so was issuing the arrest warrant.
The court previously said it was seeking an arrest warrant for Ismail Haniyeh, the leader of Hamas who was subsequently killed in July.
The home secretary has refused to say if Israeli Prime Minister Benjamin Netanyahu would be arrested if he landed on British soil after an international arrest warrant was issued for him.
On Thursday, the International Criminal Court (ICC) issued arrest warrants for Netanyahu and former Israeli defence secretary Yoav Gallant for alleged war crimes and crimes against humanity related to the war in Gaza.
But Yvette Cooper said the ICC, which the UK is a member of, is independent and while the government respects that, it “wouldn’t be appropriate for me to comment” on the processes involved.
She told Sky News: “We’ve always respected the importance of international law, but in the majority of the cases that they pursue, they don’t become part of the British legal process.
“What I can say is that obviously, the UK government’s position remains that we believe the focus should be on getting a ceasefire in Gaza.”
However, Emily Thornberry, Labour chair of the foreign affairs committee in parliament, told Sky News: “If Netanyahu comes to Britain, our obligation under the Rome Convention would be to arrest him under the warrant from the ICC.
“Not really a question of should, we are required to because we are members of the ICC.”
The government said after winning July’s election it would not oppose the ICC’s right to issue the warrants.
An ICC arrest warrant was also issued for Hamas leader Mohammed Diab Ibrahim al Masri, the mastermind behind the 7 October attacks in Israel, for alleged war crimes and crimes against humanity.
Israel claims Al Masri was killed earlier this year but the ICC said that has not been confirmed, so it was issuing the arrest warrant.
Benjamin Netanyahu and Yoav Gallant (right) have arrest warrants against them. File pic: Reuters
Netanyahu’s office said the warrants against him and Gallant were “anti-semitic” and said Israel “rejects with disgust the absurd and false actions”.
Neither Israel nor the US are members of the ICC. Israel has rejected the court’s jurisdiction and denies committing war crimes in Gaza.
US President Joe Biden described the warrants against Israeli leaders as “outrageous”, adding: “Whatever the ICC might imply, there is no equivalence – none – between Israel and Hamas.”
Former Israeli prime minister Naftali Bennett said the warrants for Netanyahu and Gallant were a “mark of shame” for the ICC.
The Board of Deputies of British Jews said the ICC’s decision sent a “terrible message”.
Hungarian Prime Minister Viktor Orban said on Friday he would invite Netanyahu to visit Hungary and he would guarantee the arrest warrant would “not be observed”.
However, both France and Italy signalled they would arrest Netanyahu if he came to their countries.
Read more:
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Why have arrest warrants been issued?
The ICC originally said it was seeking arrest warrants for the three men in May for the alleged crimes and on Thursday announced that it had rejected challenges by Israel and issued warrants of arrest.
In its update, the ICC said it found “reasonable grounds to believe” that Netanyahu and Gallant “bear criminal responsibility” for alleged crimes.
These, the court said, include “the war crime of starvation as a method of warfare; and the crimes against humanity of murder, persecution, and other inhumane acts”.
It is the first time a sitting leader of a major Western ally has been accused of war crimes and crimes against humanity by a global court of justice.
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