Kwasi Kwarteng admits tax plans caused ‘a little turbulence’
Kwasi Kwarteng told the Conservative conference that it had been a “tough day” hours after U-turning on a tax cut for high earners, admitting his economic plan had caused “a little turbulence”.
The speech came after Kwarteng abandoned his plan to abolish the 45% top rate of income tax in a humiliating reversal. There had been a growing Conservative revolt over the policy and a tumultuous reaction from markets.
Opening his speech, Kwarteng said: “What a day!” to laughter from the audience and added: “It has been tough but we need to focus on the job in hand. 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.”
Kwarteng said he was still committed to cutting taxes, including the income tax reduction, reversing the national insurance rise and cutting stamp duty.
In a short passage addressing the controversy, Kwarteng said: “I can be frank. I know the plan put forward only 10 days ago has caused a little turbulence. I get it. We are listening and have listened, and now I want to focus on delivering the major parts of our growth package.”
But he said that “growing our economy should be our central and guiding mission”.
“Because with energy bills skyrocketing, a painful Covid aftermath, war on our continent, a 70-year-high tax burden, slowing global growth rates and glacially slow infrastructure delivery, we couldn’t simply do nothing. We can’t sit idly by. What Britain needs more than ever is economic growth.”
Kwarteng said that the overriding mission of the government would start to show progress. “Even in the face of extreme volatility in global markets … we will show that our plan is sound, that it is credible and that it will
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