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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%, 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.

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“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

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”.

A stony silence from the audience as chancellor gives dull, uninformative 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?

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.”

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

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.

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US envoy to meet Putin in Moscow – as NATO could consider ‘pre-emptive strike’

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US envoy to meet Putin in Moscow - as NATO could consider 'pre-emptive strike'

Donald Trump’s envoy Steve Witkoff will meet Vladimir Putin in Moscow on Tuesday, as diplomacy intensifies over ending the war in Ukraine.

Washington is “very optimistic” about reaching an agreement, Donald Trump’s press secretary Karoline Leavitt said ahead of the trip, after Ukrainian officials met US representatives on Sunday.

Yet both sides have indicated there’s a long road ahead before resolving key sticking points, namely control of Ukrainian territory and post-war security guarantees for Kyiv.

Catch up on the latest Ukraine war developments here

Mr Putin implied last week he would stop fighting only when Ukrainian troops withdrew from all four Ukrainian regions that Russia illegally annexed in 2022.

Russia does not fully control these regions, but its armed forces made their biggest advance in Ukraine for a year in November, capturing 270 square miles, according to analysis by the AFP news agency.

Ukrainian president Volodymyr Zelenskyy has said repeatedly that giving up territory is not an option.

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Europe ‘exposed’

He was in Paris on Monday for talks with French president Emmanuel Macron, who held a joint call with Prime Minister Keir Starmer and reiterated his support for Ukrainian sovereignty.

But the diplomacy set in motion by Trump’s peace plan “painfully exposed” Europe’s weakness, Nigel Gould-Davies of the International Institute for Strategic Studies wrote in a recent commentary.

“Despite being the main source of Ukraine’s economic and military support, it is marginal to the diplomacy of the war and has done little more than offer amendments to America’s draft peace plan.”

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Behind the scenes with new-look Sky News show

All the while, European allies have been the target of so-called “hybrid warfare”, not least repeated airspace incursions by Russian drones and fighter jets.

NATO’s most senior military officer went as far as to say on Monday that the alliance could consider a “pre-emptive strike” against Russia a “defensive action”, according to the Financial Times.

Admiral Giuseppe Cavo Dragone’s remarks were condemned as extremely irresponsible and an attempt to escalate tension by the Kremlin.

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More than 1,100 confirmed dead and 800 missing in catastrophic Asia floods

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More than 1,100 confirmed dead and 800 missing in catastrophic Asia floods

Rescue and recovery and efforts are under way in parts of South and Southeast Asia where the number of those killed in devastating floods continues to rise.

The extreme weather last week has killed at least 366 people in Sri Lanka, 604 in Indonesia, and 176 in Thailand, according to authorities.

Rescuers are searching for 464 missing people in Indonesia, and a further 367 in Sri Lanka, after a cyclone and other storms triggered flooding and landslides in the region.

In a post on X, the King and Queen Camilla said they were “deeply saddened” to hear about devastating storms and added their “heartfelt condolences” to the families of those who have died.

Landslides in Sarasavigama village near Kandy, Sri Lanka. Pic: AP
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Landslides in Sarasavigama village near Kandy, Sri Lanka. Pic: AP

A man wades through the flooded street, following heavy rainfall in Wellampitiya, Sri Lanka. Pic: Reuters
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A man wades through the flooded street, following heavy rainfall in Wellampitiya, Sri Lanka. Pic: Reuters

A man uses a makeshift raft at a flooded area, following Cyclone Ditwah in Kelaniya, Sri Lanka. Pic: Reuters
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A man uses a makeshift raft at a flooded area, following Cyclone Ditwah in Kelaniya, Sri Lanka. Pic: Reuters

Hundreds of thousands in shelters in Sri Lanka

Sri Lankan authorities said about 218,000 people were in temporary shelters after downpours that triggered landslides, primarily in the tea-growing central hill country.

People were seen salvaging belongings from flooded homes along the banks of the Kelani River, near the capital Colombo on Monday.

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Meanwhile, train and flight services have resumed after being disrupted last week, but schools stayed closed, officials said.

Cyclone Ditwah was the “largest and most challenging” natural disaster in Sri Lanka’s history, President Anura Kumara Dissanayake said.

A landslide survivor crosses a section of a damaged road in Sarasavigama village near Kandy, Sri Lanka. Pic: AP
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A landslide survivor crosses a section of a damaged road in Sarasavigama village near Kandy, Sri Lanka. Pic: AP

Landslide survivors salvage belongings at the site of a landslide in Sarasavigama village near Kandy, Sri Lanka. Pic: AP
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Landslide survivors salvage belongings at the site of a landslide in Sarasavigama village near Kandy, Sri Lanka. Pic: AP

A man uses his scarf to protect himself from the rain in the aftermath of Cyclone Ditwah, in Chennai, India. Pic: Reuters
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A man uses his scarf to protect himself from the rain in the aftermath of Cyclone Ditwah, in Chennai, India. Pic: Reuters

The cyclone also brought heavy rain to India’s southern state of Tamil Nadu over the weekend, with authorities saying three people were killed in rain-related incidents.

The storm, which as of 5pm UK time on Monday was about 20km (12 miles) off the coast of the state capital Chennai, has weakened into a “deep depression” and was expected to weaken further in the next few hours, weather officials said.

Amount of rainfall expected in South and Southeast Asia in the next 48 hours
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Amount of rainfall expected in South and Southeast Asia in the next 48 hours

Over a million affected in Indonesia

More than 28,000 homes have been damaged in Indonesia, with 1.4 million people affected by torrential rains following a tropical storm that formed in the Malacca Strait.

The country’s president, Prabowo Subianto, called it a catastrophe and pledged to rebuild infrastructure as he visited the three affected provinces on Monday, where nearly 300,000 people have been displaced by the flooding.

Rescuers search for flood victims in Tanah Datar, West Sumatra, Indonesia. Pic: AP
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Rescuers search for flood victims in Tanah Datar, West Sumatra, Indonesia. Pic: AP

A flooded field in Indonesia's West Sumatra province. Pic: Reuters
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A flooded field in Indonesia’s West Sumatra province. Pic: Reuters

Rescuers search for victims at a village affected by flash flooding, in Agam, West Sumatra, Indonesia. Pic: AP
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Rescuers search for victims at a village affected by flash flooding, in Agam, West Sumatra, Indonesia. Pic: AP

‘Nothing remains’

“The water just rose up into the house and we were afraid, so we fled. Then we came back on Friday, and the house was gone, destroyed,” said Afrianti, 41, who only goes by one name and lives in West Sumatra’s Padang city.

She and her family of nine have made their own tent shelter beside the single wall that remains of their home.

“My home and business are gone, the shop is gone. Nothing remains. I can only live near this one remaining wall,” she said.

Highest one-day rainfall in Thai city for 300 years

In Thailand, flooding in eight southern provinces affected about three million people and led to a major mobilisation of its military to evacuate critical patients from hospitals and reach people stuck in floodwaters for days.

In the worst-affected city of Hat Yai, a southern trading hub, 335mm (13 inches) of rain fell on 21 November, its highest single-day tally in 300 years, followed by days of unrelenting downpours.

More than three million people have been impacted by floods in Thailand
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More than three million people have been impacted by floods in Thailand

People move a car damaged by floods in Songkhla province, southern Thailand. Pic: AP
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People move a car damaged by floods in Songkhla province, southern Thailand. Pic: AP

King offers ‘heartfelt condolences’

King Charles and Queen Camilla responded to the crisis in a statement posted on X and praised the work of emergency responders: “We wish to express our heartfelt condolences to the families of those who have so tragically lost their lives.

“Our thoughts and prayers are with the many whose homes have been destroyed and to all who are awaiting news of loved ones missing.

“These disasters remind us of the increasingly urgent need to restore the balance and harmony of Nature.”

Thailand’s Prime Minister Anutin Charnivirakul expects residents to be able to return home within seven days, a government spokesperson said on Monday.

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The first batch of compensation payments was set to be distributed on Monday, starting with 239m baht (£5.6m) for 26,000 people, the spokesperson added.

In Malaysia there have been at least three deaths and authorities are still on alert for a second and third wave of flooding as 11,600 remain in evacuation centres.

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‘Many options’ on table for Venezuela as US mulls land attacks on drug traffickers

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'Many options' on table for Venezuela as US mulls land attacks on drug traffickers

“Many options” are on the table to deal with Venezuelan drug gangs, the White House has said, as the US considers attacking on land.

President Trump is meeting his national security team on Monday and could discuss what would be a major escalation in strikes that have so far only targeted boats.

Karoline Leavitt, the president’s press secretary, did not detail what the meeting would focus on. However, Mr Trump said last week that land strikes would start “very soon”.

“There’s many options at the president’s disposal that are on the table – and I’ll let him speak on those,” Ms Leavitt told reporters.

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Three killed as US strikes another alleged drug boat

American forces have carried out at least 21 strikes on boats it claims were carrying narcotics to its shores over the last few months.

The US has accused Venezuelan President Nicolas Maduro of being involved in the drugs trade – a claim he denies.

Venezuela has said the attacks, which have killed more than 80 people, amount to murder and that President Trump’s true motivation is to oust Mr Maduro and access its oil.

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President Maduro – widely considered a dictator by the West – said on Monday that Venezuelans are ready “to defend [the country] and lead it to the path of peace”.

“We have lived through 22 weeks of aggression that can only be described as psychological terrorism,” he said.

Concerns have been raised over the legality of the US attacks, which the Pentagon has sought to justify by designating the gangs as foreign terror organisations.

Image of an alleged drug boat being targeted by the US military. Pic: Truth Social
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Image of an alleged drug boat being targeted by the US military. Pic: Truth Social

Tensions remain high over America’s large deployment in the Caribbean Sea and eastern Pacific, which includes its flagship aircraft carrier and thousands of troops.

The US has released videos of boats being blown up but has not provided evidence – such as photos of drugs – to support the smuggling claims.

President Maduro is widely considered a dictator by the West. Pic: Reuters
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President Maduro is widely considered a dictator by the West. Pic: Reuters

Controversy also surrounds the first incident, on 2 September, in which 11 people were killed – with a follow-up strike targeting the boat after the first attack left two survivors in the water.

US media reported defence secretary Pete Hegseth gave an order beforehand that everyone on board should be killed.

However, there are concerns about the legality of the second strike if the survivors posed no threat.

Mr Hegseth dismissed the reporting as “fake news” and insisted all actions in the region are compliant with US and international law.

“Every trafficker we kill is affiliated with a Designated Terrorist Organization,” he said on X.

President Trump said on Sunday he would not have wanted a second strike and that Mr Hegseth had denied giving such an order.

Read more from Sky News:
Hong Kong fire: 13 arrested as death toll hits 151
More than 1,100 confirmed dead in Asia floods

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Is US about to go to war with Venezuela?

Ms Leavitt confirmed on Monday that the boat had been hit by a second strike – but denied Mr Hegseth gave the order for the follow-up.

Instead, she said he had authorised US navy vice admiral Frank Bradley to attack and the admiral acted “well within his authority and the law, directing the engagement to ensure the boat was destroyed and the threat to the US was eliminated”.

As the US weighs its next steps, Mr Trump said on Sunday he had spoken to President Maduro by phone and that the conversation went neither “well or badly”.

In recent days, he also stated that Venezuela’s airspace should be considered closed – with the South American nation calling it a “colonial threat” and “illegal, and unjustified aggression”.

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