The Chancellor has been branded 'patronising' after he described the market turmoil of his mini-budget as 'a little bit of turbulence.' Kwasi Kwarteng made the comment on Monday (October 3) while giving a speech at the Conservative Party Conference in Birmingham.
Defending the government’s measures aimed at growing the economy, Mr Kwarteng said: “I can be frank. I know the plan put forward only 10 days ago has caused a little turbulence. I get it. I get it. We are listening and have listened, and now I want to focus on delivering the major parts of our growth package.”
The mini-budget, which was set out in Parliament last month by the Chancellor and Prime Minster Liz Truss, tanked the pound to its lowest value in decades. Its aim was to help grow the economy.
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People took to Twitter to share their disapproval of the remark - and of the Tory party conference's reaction to it. Callum Scott (@cscottjourno) said: "Kwasi Kwarteng joking in his speech about recent 'turbulence' will be seen as incredibly patronising, especially at a time when they need to be trying to unite the party..."
"The plan I put forward caused a little turbulence - I get it." (Tory Audience laugh) - You know what - it really hasn't been that funny Kwasi #Kwarteng," penned @TrishaLewisTalk, while @ManofScripts added: "Kwasi Kwarteng: 'Our plans introduced 10 days ago have caused a little turbulence.' Laughter from the Tory Conference. A f****** shameful response but not at all surprising."
The Liberal Democrats have also criticised the Chancellor's comments. The party said that the Chancellor’s speech at the Tory party conference will bring “cold comfort” to struggling households.
The party’s Treasury spokesperson Sarah Olney said: “Laughing about the turbulence caused by this botched budget is an insult to the millions of people already facing spiralling mortgage costs. Kwasi Kwarteng’s fiscal failure saw the economy tank and mortgage rates go through the roof, his words will bring cold comfort to struggling families and pensioners.
“This should be his first and last conference speech as Chancellor. If he had any integrity left Kwarteng would hand in his notice and apologise to the British people for the damage he has caused.”
Shadow chancellor Rachel Reeves MP said Mr Kwarteng’s speech showed “a Chancellor and a Tory government completely out of touch, with no understanding on its own appalling record on growth”. She said: “What the Chancellor called a little financial disturbance is a huge economic body blow to working people that will mean higher prices and soaring mortgages. That’s the Tory economic premium.
“This is an economic crisis made in Downing Street, paid for by working people. The Tories have damaged the UK’s reputation on the global stage and left us all worse off. The fact the Bank of England had to step in with a £65 billion bailout out with taxpayers’ money is deeply shameful.
“They must reverse this Budget and abandon their discredited, dangerous trickle-down approach.”
It comes as the Chancellor confirmed that the government will not scrap the top rate of income tax in a major U-turn. Mr Kwarteng has come under fire for his decision to abolish the 45p rate of tax for people who earn more than £150,000 per year.
The move was part of a raft of measures to boost ‘growth’, he said, and were announced in the mini-budget on September 23.
But that budget has led to economic turmoil for the country in the days since. There has been a run on the pound, and reports suggest that more than four in ten mortgage rates have been suspended by lenders after a rise in interest rates.
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