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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”.

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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.

British Chancellor of the Exchequer Kwasi Kwarteng speaks during Britain's Conservative Party's annual conference in Birmingham, Britain, October 3, 2022. REUTERS/Toby Melville

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”.

Read more:

First phase of Truss’ reign is over – can she survive 45p tax rate U-turn?
It’s not clear which policy tipped markets over the edge – or which chancellor can reverse to put genie back in the bottle

Stony faces in quiet audience as chancellor gives little detail in dull speech

The chancellor’s speech was most interesting for what he didn’t say.

We heard the familiar refrain that this is a government that will “do things differently”, that growth is the big priority, that tax cuts are the way forward.

But there was no acknowledgement of a screeching U-turn on the 45p tax cut, and little detail on how “fiscal discipline” will be achieved.

There was no contrition, beyond an admission it had been a “tough” day.

Under the circumstances, it was a pretty dull speech; the conference audience was polite, but fairly quiet.

Then again, it may be that not making new news lines was the best possible outcome for Kwasi Kwarteng.

The loudest applause came when the chancellor talked about Brexit and Ukraine.

Red meat for the membership, but when he said this government “will always be on the side of people who need help the most” the applause was muted.

Ministers in the front row cheered loudly, but behind them there were stony faces.

His words are at odds with claims his plans disproportionately favour the wealthy: tax cuts for the richest, ending the cap on bankers’ bonuses amidst speculation about welfare cuts.

The front bench will have to do more than just cheer loudly if they are going to convince those who think they are the party of the rich.

The chancellor’s first words to the conference hall were “what a day!” and he was not wrong.

It was an extraordinary context for a chancellor’s conference speech.

Crisis talks last night led to the screeching U-turn on the government’s plans to cut the 45p top rate of tax.

The PM was the first to applaud on the front row – the trouble for her is she has portrayed herself as an unwavering, steely leader who is willing to push through unpopular decisions.

Can she credibly maintain that claim after what’s happened today?

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”.

British Prime Minister Liz Truss, Chancellor of the Duchy of Lancaster Nadhim Zahawi and Secretary of State for Health and Social Care Therese Coffey attend Britain's Conservative Party's annual conference in Birmingham, Britain, October 3, 2022. REUTERS/Hannah McKay
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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.

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Ukrainian officials head to US for peace talks – while dramatic footage shows Russian oil tankers being hit

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Ukrainian officials head to US for peace talks - while dramatic footage shows Russian oil tankers being hit

Ukraine’s representatives are preparing for renewed peace talks in the US, while dramatic footage has shown Russian tankers being hit by naval drones.

President Zelenskyy said a delegation headed by national security chief Rustem Umerov was on its way to “swiftly and substantively work out the steps needed to end the war”.

They are due to be greeted by US secretary of state Marco Rubio, Donald Trump’s special envoy Steve Witkoff, and the US president’s son-in-law Jared Kushner, a senior US official told Reuters news agency.

National security chief Rustem Umerov is leading the delegation. Pic: Reuters
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National security chief Rustem Umerov is leading the delegation. Pic: Reuters

After the US-Ukraine talks, an American delegation is expected to travel to Moscow to meet President Putin.

It comes after Mr Trump released a 28-point proposal last week that would hand swathes of land to Russia and limit the size of Kyiv’s military.

It was widely seen as heavily favouring Russia and led Mr Zelenskyy to swiftly engage with American negotiators.

President Trump said on Tuesday his plan had been “fine-tuned”.

More on Ukraine

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Ukraine peace plan in 60 seconds

In his evening address on Saturday, the Ukrainian leader said: “The American side is demonstrating a constructive approach, and in the coming days it is feasible to flesh out the steps to determine how to bring the war to a dignified end.”

Mr Zelenskyy’s team in the US is without his former chief of staff and lead negotiator, Andrii Yermak, as he quit on Friday after officials raided his home amid a corruption scandal.

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What do we know about Ukraine’s corruption scandal?

Tankers hit by ‘Sea Baby’ drones

Ukrainian drones were shown hitting two of Russia‘s so-called “shadow fleet” oil tankers in the Black Sea in footage released on Saturday.

Friday’s attack was carried out by the country’s security service and its navy, an official told Reuters. They said both ships “sustained critical damage” that took them out of service.

A security source told Associated Press that domestically-made “Sea Baby” drones were used.

The tankers were under sanctions and heading to a Russian port to load up with oil destined for foreign markets, the official said.

They have been identified as the Kairos and Virat.

The blasts hit tankers off Turkey's Black Sea coast. Pic: Turkish Directorate General for Maritime Affairs/Reuters
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The blasts hit tankers off Turkey’s Black Sea coast. Pic: Turkish Directorate General for Maritime Affairs/Reuters

Read more:
Who is Steve Witkoff, the property mogul seeking a peace deal?
Analysis: Trump’s peace plan had Russian fingerprints all over it

The 274m-long Kairos suffered an explosion and caught fire en route from Egypt to Russia on Friday, Turkey’s transport ministry said. The crew was evacuated.

The Virat was reportedly struck about 35 nautical miles offshore.

It was attacked by unmanned vessels and sustained minor damage to its starboard side, the Turkish ministry said.

Russia deploys a fleet of often ageing, uninsured and unmarked tankers to circumvent sanctions on its oil exports, which continue to help pay for the Ukraine war.

Another Ukrainian attack halted operations at an oil terminal near the Russian port of Novorossiysk on Saturday.

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Russian drone and missile attack hits Kyiv

Andriy Kovalenko, from Ukraine’s National Security and Defence Council, said special forces were responsible.

“Naval drones managed to destroy one of the three oil tanker berths of the Caspian Pipeline Consortium in the Novorossiysk area,” he wrote on Telegram.

Six killed in aerial attacks on Ukraine

Russia carried out another onslaught on the Ukrainian capital overnight into Saturday, firing 36 cruise and ballistic missiles and launching around 600 drones.

Officials said three people were killed in and around Kyiv, two in the Dnipropetrovsk region and one in a midday attack in Kherson region in the south.

Mayor Vitali Klitschko said 29 others were injured in Kyiv, largely due to falling debris from intercepted drones hitting buildings.

The attacks also hit Ukrainian energy facilities and left hundreds of thousands without power in the capital. Supplies have since been restored.

Targeting such infrastructure has become a familiar tactic from Russia over the winter, in what Ukraine officials say is the “weaponising” of the cold.

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Hong Kong mourns those lost to fire as investigators search for remains

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Hong Kong mourns those lost to fire as investigators search for remains

Grief was not lonely today in Hong Kong. Three days after the worst fire in the history of modern Hong Kong, it feels as though it has barely sunk in.

The weekend at least lent them time to pay tribute, and gave them some space to reflect.

People came in droves to lay flowers, so many a queuing system was needed.

People queue with flowers near the site to mourn the victims of the deadly fire. Pic: AP
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People queue with flowers near the site to mourn the victims of the deadly fire. Pic: AP

Official books of condolences were also set up in multiple parts of the city.

It was the first day large teams of investigators were able to enter the site. Dozens of them in hazmat suits were bused in, their work the grimmest of tasks.

Every so often you could see a flashlight peep through the window of an upper blackened window, a reminder that the fire services are still undertaking dangerous work.

But the reach of the authorities is ramping up here.

Firefighters walk through the burned buildings after the deadly fire. Pic: AP
Image:
Firefighters walk through the burned buildings after the deadly fire. Pic: AP

Yesterday a grass roots aid distribution centre was the vibrant heart of the response.

They received notice at 4am that they needed to pack up and move on. By 10.30am, the mountains of donations were gone, residents watched on, bewildered.

The task apparently will be handed over to professional NGOs.

“I think the government’s biggest concern is due to some past incidents,” one organiser tells us. “They may liken this to previous events. The essence looks similar.”

Pic: AP
Image:
Pic: AP

She’s careful with her words, but she’s clearly hinting at major pro-democracy protests that were crushed by authorities in 2019.

Any sort of mass gathering is now seen as a risk, the system is still very nervous.

And they might well be because people here are angry.

What, they ask, did the government know? What did it choose to ignore?

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How Hong Kong’s government failed to act on fire fears

Indeed, Sky News has learnt that residents raised their fears over fire safety connected to extensive renovations on Wang Fuk Court as early as September 2024.

They flagged the suspected flammability of green nets being used to cover the building.

An email response from the Labour Department was sent a few months later to Jason Poon, a civil engineer-turned-activist, who was working with residents. It insists that “the mesh’s flame retardant properties meet safety standards”.

But many clearly didn’t believe it. Posts spanning many months on a residents’ Facebook group continued to voice their fears.

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Hong Kong fire survivors supported by community

When a much smaller fire broke out in the city last month, one resident posted: “All the materials outside are flammable, I feel really worried.”

“I feel that same way” another replied. “The government has no sense of concern.”

For Poon, who dedicates much of his time to fighting lax safety standards in Hong Kong’s construction industry, the whole experience has been devastating.

“They knew all the maintenance was using corner-cutting materials, but they didn’t do anything,” he says.

“This is a man-made disaster.”

We put these allegations to Hong Kong’s Labour Department but they have not yet responded to our request for comment.

Grief may still be the prominent force here, but anger is not that far behind.

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Indonesia: More than 300 people dead and others missing after floods and landslides

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Indonesia: More than 300 people dead and others missing after floods and landslides

More than 300 people have died and dozens are missing following floods and landslides in Indonesia, which has also been hit by an earthquake.

Monsoon rains over the past week caused rivers to burst their banks in North Sumatra province.

The deluge tore through mountainside villages, swept away people and submerged thousands of houses and buildings, the National Disaster Management Agency said.

As rescue workers continued their efforts on Saturday, the head of the country’s disaster mitigation agency said the number of dead had risen to at least 303 people. Authorities fear the figure will increase.

Flooded buildings in Medan, North Sumatra. Pic: AP/ Binsar Bakkara
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Flooded buildings in Medan, North Sumatra. Pic: AP/ Binsar Bakkara

Other Southeast Asian countries including Thailand, Malaysia and Sri Lanka have also been affected by torrential rain in the last week, with authorities working to rescue stranded citizens, restore power and communications and coordinate recovery efforts.

On Friday, the Thai government said 145 people had been killed by flooding across eight southern provinces, while two deaths have also been confirmed in Malaysia. Sri Lanka, in South Asia, has also seen 46 deaths following a cyclone, authorities said.

Medan, North Sumatra. Pic: AP/ Binsar Bakkara
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Medan, North Sumatra. Pic: AP/ Binsar Bakkara

The extreme weather was driven by tropical cyclone Senyar, which formed in the Strait of Malacca, Indonesia’s Meteorology, Climatology and Geophysical Agency said.

Rescuers in Indonesia have been struggling to reach some areas cut off by damaged roads, and where communications lines have come down.

Relief aircraft have been delivering aid and supplies to the hard-hit district of Central Tapanuli in North Sumatra and other provinces in the region.

Tanah Datar, West Sumatra. Pic: AP/ Ali Nayaka
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Tanah Datar, West Sumatra. Pic: AP/ Ali Nayaka

The agency said West Sumatra’s Agam district had also been affected.

Pictures of the rescue efforts show workers trudging through waist-deep mud and areas filled with tree trunks and debris, searching for any victims potentially trapped.

In Aceh province, flooded roads meant authorities struggled to get tractors and other heavy equipment to hilly hamlets which were hit by mud and rocks in the deluge.

Malalak, West Sumatra. Pic: AP/ Nazar Chaniago
Image:
Malalak, West Sumatra. Pic: AP/ Nazar Chaniago

Hundreds of police officers, soldiers and residents dug through the debris with their bare hands and spades as heavy rain hindered their efforts.

Meanwhile, a magnitude 6.3 earthquake hit Sumatra island near Aceh province on Thursday, the country’s geophysics agency said.

Torrential rain triggered flash flooding and landslides in Sumatra earlier in the week. Videos posted on social media showed water streaming down from rooftops as panicked residents scrambled to safety.

Heavy seasonal rain from about October to March often causes flooding and landslides in Indonesia – an archipelago of more than 17,000 islands including Sumatra – where millions of people live in mountainous areas or near fertile floodplains.

Last week, almost 1,000 people from three villages on Java were forced to flee to shelters after the eruption of Mount Semeru, the island’s highest volcano.

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