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Daily Mirror
Daily Mirror
Politics
Dave Burke

Kwasi Kwarteng breaks silence after mini-budget tanks markets - insisting plan will work

Under-fire Chancellor Kwasi Kwarteng says he intends to stick to his guns following his catastrophic mini-budget - despite plunging the economy into chaos.

Yesterday the Bank of England was forced to intervene to prevent pensions funds from collapsing within hours and the International Monetary Fund (IMF) called on the government to reverse its tax cuts.

Meanwhile the government is plotting widespread "efficiency savings" and threatens a real-terms benefits cut to balance the books.

Asked if he had a message to the financial markets ahead of a visit to a business in Darlington, Mr Kwarteng said: "Absolutely.

"We are sticking to the growth plan and we are going to help people with energy bills.

"That's my two top priorities."

Liz Truss earlier defenced her government in a series of car-crash interviews (PA)

Asked by Sky News if his mini-budget had been a disaster, the Chancellor said: "What we're focussing on is the growth plan and making sure, with things like energy intervention, the people right across this country are protected."

He claimed that the mini-budget was "essential" in "resetting the debate around growth and focussing us on delivering much better growth outcomes".

He said it was "premature" to say whether benefits would rise in proportion to inflation - as was previously pledged by the Tories under Boris Johnson.

On Monday Mr Kwarteng was filmed awkwardly dodging questions as the pound crashed to record lows against the dollar.

In a 53-second clip, the Tory Chancellor was followed through central London to his office after a torrid night on the markets.

Massive tax cuts, announced more than a week ago, coupled with huge borrowing, have spooked finance experts and sent Sterling plummeting to previously unknown levels.

Earlier today Prime Minister Liz Truss finally broke cover after a week of silence in a series of car-crash radio interviews, but refused to U-turn over her disastrous mini-Budget.

The arrogant Prime Minister defended her £72bn of borrowing in one year to fund tax cuts - many of them for the rich - while her ministers plot "efficiency savings" and threaten a real-terms benefits cut to balance the books.

Despite a £65bn bailout from the Bank of England to save pension funds from collapse and a dire warning from the IMF, she said: "As Prime Minister, I have to do what I believe is right for the country.”

Ms Truss is refusing calls to sack Mr Kwarteng over the budget - which she insists is needed to create growth. One of her senior ministers urged Brits to "remain very steady and calm" while another insisted: "I don't accept the word 'crisis' at all".

In a series of brutal interviews with BBC local radio, she said: "We had to take urgent action to get our economy growing, get Britain moving, and also deal with inflation. Of course, that means taking controversial and difficult decisions, but I'm prepared to do that as Prime Minister."

Yet despite vowing to "grow the size of the pie", Ms Truss was unable to say when the "growth" she has promised will actually happen. She said: “We won't see the growth come through overnight but what's important is that we're putting this country on a better trajectory for the long term.”

Meanwhile the Treasury has said that ministers will be asked to "take a responsible and disciplined approach to spending focused on the things that matter most".

In response to media reports that the Treasury would write to Cabinet ministers asking them to make efficiency cuts after the mini budget, a spokesperson said: "The British taxpayer expects government to run as efficiently and effectively as possible.

"As usual, it is critical that we stick to budgets which is why we're asking departments to take a responsible and disciplined approach to spending focused on the things that matter most, including driving growth."

Further details are expected to be set out by Government departments in coming weeks.

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