Chancellor Kwasi Kwarteng insists he is ‘not going anywhere’ and is ‘totally focused’ on growth plan
The chancellor has insisted he is “not going anywhere” amid the economic turmoil in the UK and said he remains “totally focused” on delivering the government’s growth plan.
During a visit to Washington DC, Kwasi Kwarteng was asked whether he and Liz Truss, the prime minister, will be in their respective roles this time next month.
“Absolutely. 100%. I’m not going anywhere,” he said.
The chancellor admitted there has been some “domestic turbulence” since he unveiled his tax-cutting mini-budget at the end of September and the pound fell to record lows against the dollar, but said there is “a very dicey situation globally”.
Truss is out ‘and we have the numbers’, says Tory MP – politics latest
“I speak to Number 10, the PM all the time, and we are totally focused on delivering the growth plan,” he said.
Pushed on whether there will be any more reversals of policies in the mini-budget, Mr Kwarteng said: “I am totally focused on the growth agenda.”
Last week, after open revolt from Tory MPs and a surge in support for Labour in the polls, Ms Truss and Mr Kwarteng abandoned the plan to abolish the highest 45% tax rate.
Sky News understands discussions are under way in Downing Street over whether to scrap some of the contentious proposals which remain in the chancellor’s tax-cutting mini-budget.
The proposed changes to corporation tax and dividend tax are those understood to be under discussion.
Downing Street insisted earlier on Thursday that there will be no more U-turns on policies in the government’s tax-cutting mini-budget despite pressure from Conservative MPs for changes to be made.
Asked to confirm there would be no further reversals, the prime minister’s official spokesman said: “Yes, as I said to a number of questions on this yesterday – and the position has not changed from what I set out to you all then.”
Please use Chrome browser for a more accessible video player
Discussions happening over whether to scrap parts of the mini-budget
Ms Truss faces open revolt in her party over the £45bn package of unfunded tax cuts in the mini-budget, which unleashed chaos in the markets when it was announced last month.
The chancellor will set out his debt-cutting plan in more detail on 31 October, having bowed to pressure to bring the date forward from 23 November given the economic turbulence.
Earlier on Thursday, James Cleverly, the foreign secretary, refused to say there would be no more reversals.
He told Sky News the Halloween statement would give “a more holistic assessment of the public finances and our response to the global headwinds that every democracy, every economy in the world is facing”.
Pressed on the plan to axe the increase in corporation tax from 19% to 25% in April, Mr Cleverly said it is “absolutely right” the government helps businesses to “stay competitive” and “stay afloat”.
The Treasury had vowed to reduce the rate of income tax on dividends by 1.25 percentage points.
Please use Chrome browser for a more accessible video player
How long can Truss stay in power?
Mr Kwarteng is meeting with International Monetary Fund (IMF) leaders in Washington DC today, after the institution’s chief economist said tax cuts threatened to cause “problems” for the UK economy.
Speaking at a press conference in Washington, the managing director of the IMF said it is sometimes right for a “recalibration” of policies as she was questioned over reports of further U-turns after the mini-budget market chaos.
Kristalina Georgieva said: “Our message to everybody, not just the UK, is that at this time, fiscal policy should not undermine monetary policy.”
Read more:
What on earth is happening in UK markets?
What are bonds and where do they fit in the mini-budget crisis?
Meanwhile, in a post on social media on Thursday, former Conservative chancellor George Osborne questioned why Ms Truss and Mr Kwarteng would wait for the chancellor’s statement on 31 October to perform an “inevitable U-turn” on their mini-budget.
Please use Chrome browser for a more accessible video player
Tories ‘must get back to being fiscally responsible’
On Wednesday, Mel Stride, the Tory chairman of the Commons Treasury Committee, said that given Ms Truss’s commitments to protect public spending, there was a question over whether any plan that did not include “at least some element of further row back” on the tax-slashing package can reassure investors.
While David Davis, the Tory former minister, called the mini-budget a “maxi-shambles” and suggested reversing some of the tax cuts would allow Ms Truss and Mr Kwarteng to avert leadership challenges for a few months.
A new aid system has opened its first distribution centres in Gaza, according to a US-backed organisation dealing with supplies.
The Gaza Humanitarian Foundation (GHF) began its operations in the territory on Monday, following the resignation of its director, Jake Wood, over its independence.
Gaza’s 2.3m population has been pushed towards famine by Israel’s almost three-month blockade.
Boxes of aid to be distributed across Rafah. Pic: Reuters.
The GHF said lorryloads of food – it did not say how many – had been delivered to its hubs, and distribution to Palestinians had begun.
“More trucks with aid will be delivered tomorrow, with the flow of aid increasing each day,” it said in a statement.
The controversial group, backed by Israel and the United States, has been rejected by the United Nations and other aid groups.
Follow the latest developments in our live blog
Please use Chrome browser for a more accessible video player
People line up for food in Gaza
UN agencies and major aid groups have refused to cooperate with the GHF.
They claim Israel is weaponising food, and the new distribution system will be ineffective and lead to further displacement of Palestinians.
They also argue the GHF will fail to meet local needs, and violates humanitarian principles that prohibit a warring party from controlling humanitarian assistance.
In the meantime, scores of Palestinians in Gaza, like Islam Abu Taima, have resorted to searching through rubbish to find food.
Palestinians are having to search through rubbish to find food
She found a small pile of cooked rice, scraps of bread, and a box with a few pieces of cheese inside it – which she said she will serve to her five children.
“We’re dying of hunger,” she told the Associated Press news agency.
“If we don’t eat, we’ll die.”
Islam Abu Taeima finds a piece of bread in a pile of rubbish in Gaza City. Pic: AP.
It is unclear how many of the GHF’s aid trucks will enter Gaza.
It claims it will reach one million Palestinians by the end of the week.
There are questions, however, over who is funding it and how it will work.
Trucks transporting aid for Palestinians in Rafah. Pic: Reuters.
It has been set up as part of an Israeli plan – rather than a UN distribution effort.
Israel, which suggested a similar plan earlier this year, has said it will not be involved in distributing the aid but supported the plan and would provide security.
It says aid deliveries into Gaza are taken by Hamas instead of going to civilians.
Aid groups, however, say there is no evidence of this happening on a systemic basis.
Read more from Sky News:
Russia accuses Trump of ’emotional overload’
King urged to seek Canadian apology
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
Israel began to allow a limited amount of food into Gaza last week – after a blockade that prevented food, medicine, fuel and other goods from entering the Palestinian enclave.
A letter has been signed by hundreds of judges and lawyers calling on the UK government to impose trade sanctions on Israel.
It also calls for Israeli ministers to be sanctioned and the suspension of Israel from the UN over “serious breaches of international law”.
“Genocide is being perpetrated in Gaza or that, at a minimum, there is a serious risk of genocide,” the letter says.
The Israeli government has repeatedly dismissed allegations of genocide in Gaza.
Please use Chrome browser for a more accessible video player
At least 31 dead after school attack
More than 52,000 Palestinians have been killed since Israel launched its ground invasion of Gaza, according to the Hamas-run health ministry, following the deadly attacks by the militant group on Israel, which killed 1,200 people and saw around 250 people taken hostage.
The health ministry’s figures do not differentiate between civilians and fighters in Gaza.
King Charles and Queen Camilla are being urged to use their visit to Canada to seek an apology for the abuse of British children.
Campaigners have called on them to pursue an apology for the “dire circumstances” suffered by so-called “Home Children” over decades.
More than 100,000 were shipped from orphan homes in the UK to Canada between 1869 and 1948 with many used as cheap labour, typically as farm workers and domestic servants. Many were subject to mistreatment and abuse.
Canada has resisted calls to follow the UK and Australia in apologising for its involvement in child migrant schemes.
King Charles and Mark Carney on Monday. Pic: PA
Campaigners for the Home Children say the royal visit presents a “great opportunity” for a change of heart.
“I would ask that King Charles uses his trip to request an apology,” John Jefkins told Sky News.
John’s father Bert was one of 115,000 British Home Children transported to Canada, arriving in 1914 with his brother Reggie.
“It’s really important for the Home Children themselves and for their descendants,” John said.
“It’s something we deserve and it’s really important for the healing process, as well as building awareness of the experience of the Home Children.
“They were treated very, very badly by the Canadian government at the time. A lot of them were abused, they were treated horribly. They were second-class citizens, lepers in a way.”
More on this story:
The forgotten legacy of British children sent to Canada
John Jefkins
John added: “I think the King’s visit provides a great opportunity to reinforce our campaign and to pursue an apology because we’re part of the Commonwealth and King Charles is a new Head of the Commonwealth meeting a new Canadian prime minister. It’s a chance, for both, to look at the situation with a fresh eye.
“There’s much about this visit that looks on our sovereignty and who we are as Canadians, rightly so.
“I think it’s also right that in contemplating the country we built, we focus on the people who built it, many in the most trying of circumstances.”
The issue was addressed by the then Prince of Wales during a tour of Canada in May 2022. He said at the time: “We must find new ways to come to terms with the darker and more difficult aspects of the past.”
More from Sky News:
Watch: Why is King’s Canada visit so important?
Analysis: King is ‘piggy in the middle’ in Canada-US stand-off
King Charles and Queen Camilla are on a two-day visit to Canada.
On Tuesday, the King will deliver the Speech from the Throne to open the 45th session of Canada’s parliament.
Camilla was made Patron of Barnardo’s in 2016. The organisation sent tens of thousands of Home Children to Canada. She took on the role, having served as president since 2007.
Buckingham Palace has been contacted for comment.
A spokesperson for the Canadian government said: “The government of Canada is committed to keeping the memory of the British Home Children alive.
“Immigration, Refugees and Citizenship Canada deeply regrets this unjust and discriminatory policy, which was in place from 1869 to 1948. Such an approach would have no place in modern Canada, and we must learn from past mistakes.”
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway