Kwasi Kwarteng has had to make a second humiliating U-turn after markets reacted badly to his package of tax cuts. Less than 24 hours after reversing the plan to scrap the 45p top rate of income tax, the Chancellor has announced that the date for his new fiscal plan is being brought forward.
He is now expected to publish details on how the cuts will be paid for later this month despite previously insisting he would wait until November 23. Mr Kwarteng says he wants to "move forward" with no "distractions".
Read more: Government makes U-turn on mini-Budget income tax pledge
In a speech to the Conservative Party conference in Birmingham, Mr Kwarteng acknowledged the "turbulence" caused by his mini-budget, which saw the pound's value plummet, borrowing costs soar, and the Bank of England bail out pension funds.
Even so, he promised to deliver the rest of his £43bn package of tax cuts, which is expected to be partly paid for by a squeeze on public spending. He was accused by opposition MPs of "insulting millions of people" as he sought to shrug off the market turmoil that triggered the U-turn as a "little turbulence".
Coming a little over a week after the tax cut was announced in the mini-budget and just a month into Ms Truss's premiership, the U-turn was a massive blow to their authority.
In a second change of course in a bid to reassure markets and Tory rebels, the Chancellor is understood to be bringing forward his medium-term fiscal plan, alongside official forecasts from the Office for Budget Responsibility, to later this month. Having previously insisted he would wait until November 23, Mr Kwarteng told the conference he would publish details "shortly" on how he planned to bring down public debt as a percentage of GDP over the medium term.
Despite £65 billion of Bank of England action to stave off fresh financial turmoil and the pound having plummeted over his mini-budget on September 23, Mr Kwarteng insisted the Tories will be "serious custodians of the public finances".
At the conference today, the Conservatives will attempt to shift the focus away from the economy, at Prime Minister Liz Truss tries to get the annual gathering back on track.
The Prime Minister admitted that it had not been an "easy" week but indicated she was sticking with the rest of the tax-cutting package.
She told the Express newspaper: "Express readers can rest assured: we will reward your trust. It has not been an easy week, but we have shown that we listen to people's concerns and we are determined to deliver on our core plan for economic success and security.
"Our plan for growth is essential to get the British economy moving. Growth is the only way to create jobs, boost wages and fund our vital public services like the NHS."
Writing in The Telegraph, Ms Truss added: "Abolishing the 45p top rate of tax was a tiny part of the plan and had become an unnecessary distraction.
"That is why the Chancellor and I decided to no longer proceed with it. We listened and took action."
But in a sign of continuing disquiet among Conservative MPs, Priti Patel is set to accuse Ms Truss and Mr Kwarteng of "spending today with no thought of tomorrow".
"I want to see our party regain its credibility by restoring its commitment to sustainable public spending ... which is affordable today, tomorrow and for the foreseeable future," the former home secretary will tell a conference fringe event, according to The Times.
The Prime Minister and Chancellor also faced a fresh rebellion as they declined to commit to increasing benefits in line with inflation. Failing to keep pace with rising prices would leave some of the poorest households facing a real-terms cut in their incomes.
Former Cabinet minister Michael Gove told Times Radio he would need "a lot of persuading" to stop benefits from rising in line with inflation, while former work and pensions secretary Damian Green told LBC that a freeze or cut in benefits would not get through the Commons.
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