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
Suspects arrested over Louvre heist ‘partially admit involvement’ – as officials address inside job theory
The two suspects arrested over the Louvre jewellery heist have “partially” confessed to their involvement in the robbery, according to a prosecutor.
Paris prosecutor Laure Beccuau revealed the development at a news conference on Wednesday.
Four thieves stole nine items – one of which was dropped and recovered at the scene – in a heist pulled off while the world-famous Paris museum was open to visitors on 19 October.
It took the thieves less than eight minutes to steal the jewels. They forced open a window and cut into cases with power tools after gaining access via a vehicle-mounted mechanical lift.
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Suspects in Louvre robbery ‘partially confessed’
Ms Beccuau also said the jewels had not yet been recovered.
“These jewels are now, of course, unsellable,” said Ms Beccuau. “Anyone who buys them would be guilty of concealment of stolen goods. It’s still time to give them back.”
‘No evidence’
Ms Beccuau also addressed reports that police believe the robbery could have been an inside job.
She said that there was “no evidence the thieves benefited from inside help”.
Under French rules for organised theft, custody can run up to 96 hours. That limit is due to expire late on Wednesday, and prosecutors must charge the suspects, release them or seek a judge’s extension.
Paris prosecutor Laure Beccuau speaks during a press conference about the investigation into the Louvre robbery. Pic: Reuters
One suspect is a 34-year-old Algerian national who has been living in France since 2010, Ms Beccuau said. He was arrested Saturday night at Charles de Gaulle airport as he was about to fly to Algeria with no return ticket.
Ms Beccuau said that he was living in the Paris suburb of Aubervilliers, and was known to police mostly for road traffic offences.
The other suspect, 39, was arrested Saturday night at his home in Aubervilliers.
“There is no evidence to suggest that he was about to leave the country,” said Ms Beccuau.
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Louvre jewels ‘have not returned’
The man was known to police for several thefts, and his DNA was found on one of the glass cases where the jewels were displayed, and on items the thieves left behind, she added.
Earlier, French police acknowledged major gaps in the Louvre’s defences.
Paris police chief Patrice Faure told politicians that ageing security systems had left weak spots.
“A technological step has not been taken,” he said.
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Mr Faure also revealed that the Louvre’s authorisation to operate its security cameras quietly expired in July and had not been renewed.
He said the first alert to police came not from the Louvre’s alarms, but from a cyclist outside who dialled the emergency line after seeing helmeted men with a basket lift.
Members of a forensic team inspect a window believed to have been used by the culprits. Pic: Reuters
Mr Faure also rejected calls for a permanent police post inside the museum, warning it would set an unworkable precedent and do little against fast and mobile thieves.
“I am firmly opposed,” he said. “The issue is not a guard at a door; it is speeding the chain of alert.”
World
Israel carries out fresh strike on Gaza and accuses Hamas of preparing ‘imminent terror attack’
The Israeli military says it has carried out a fresh strike on Gaza, in a move that will further raise concerns about the fragility of its ceasefire with Hamas.
The Israel Defence Forces (IDF) said it conducted the strike on what it called “terrorist infrastructure” in the area of Beit Lahia in the northern Gaza Strip.
It said the site was being used to store weapons that it claimed were “intended to be used for the execution of an imminent terror attack against IDF soldiers”.
“IDF soldiers in the southern command remain deployed in accordance with the ceasefire agreement and will continue to operate to remove any immediate threat,” a spokesperson said.
People living in Gaza City said they heard an explosion in Gaza and saw a column of smoke.
Benjamin Netanyahu had ordered earlier strikes after claiming troops had come under fire. Pic: Reuters
It comes after hospital officials said at least 104 people, including 46 children, had been killed overnight in Gaza after Israel launched new strikes.
Benjamin Netanyahu ordered the strikes after an Israeli official reported that troops had come under fire in southern Gaza.
Israel claimed a soldier was killed on Tuesday afternoon by “enemy fire” in the southern city of Rafah.
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The decision also followed Hamas’s handover on Monday of body parts that Israel said belonged to a hostage whose remains were partly recovered earlier in the conflict.
Hamas has denied any role in the Rafah shooting and reaffirmed its commitment to the ceasefire.
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The recent ‘ferocious’ attacks are the deadliest strikes since the ceasefire agreement took hold earlier this month.
‘Nothing is going to jeopardise the ceasefire’
US President Donald Trump had said the ceasefire was not at risk, telling reporters: “As I understand it, they took out an Israeli soldier.”
He added: “So the Israelis hit back and they should hit back. When that happens, they should hit back. Nothing is going to jeopardise [the ceasefire].
“You have to understand Hamas is a very small part of peace in the Middle East, and they have to behave.”
Following the latest strikes, the Israeli military said it would continue to uphold the ceasefire agreement. It added that it would respond firmly to “any violation”.
Donald Trump said the ceasefire deal between Israel and Hamas was not at risk. Pic: Reuters
‘Very disappointing and frustrating’
Qatar’s Prime Minister, Sheikh Mohammed bin Abdulrahman al-Thani, said on Wednesday that the attack on the Israeli soldier and the following airstrikes had been “very disappointing and frustrating for us”.
Qatar had been leading peace efforts in Gaza, along with the US and Egypt.
At the Council on Foreign Relations in New York, al-Thani said Hamas militants had been clear they were prepared to give up governance of the enclave, which they have run since 2007.
He added that Qatar had been pushing them to acknowledge that they need to disarm.
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