Kwasi Kwarteng

Chancellor does not rule out increasing corporation tax when asked about whether government will perform U-turn.

“But clearly, in the approach and the manner in which this has been done, that is the issue. “The fact they are not lefty, anti-government, the fact they have been spooked, is something that should be taken incredibly seriously. And it is about recognising that actually, sometimes baby steps can result in more meaningful and embraced change than perhaps a bonfire.” Party grandees are understood to be in talks about replacing Truss with a “unity candidate” Liz Truss is on the cusp of putting up corporation tax as part of a Downing Street plan to back down from the huge package of unfunded tax cuts in her mini-budget, sources claim. The former Conservative chancellor George Osborne has questioned why Liz Truss and Kwasi Kwarteng would wait till 31 October to perform an “inevitable U-turn” on their mini-budget. Overall government spending will continue to rise in real terms, the PM’s official spokesperson said. Patel was asked if Liz Truss’s commitment not to raise corporation tax should be reversed to calm the markets. Former home secretary Priti Patel has become the latest high-profile Tory MP to suggest the government could be forced into a further U-turn over the mini-budget. Kwarteng said he is “not going anywhere”. In response to a question about how markets “have improved today because they think you’re about to do a U-turn on corporation tax”, Kwarteng said: “Let’s see.” Kwasi Kwarteng’s response was “let’s see” when grilled about an imminent U-turn on his flagship cut to corporation tax.

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 ...

Asked whether he and Liz Truss, the prime minister, will be in their jobs this time next month, he said: "Absolutely. "It's an incredibly difficult position, but right now, she's playing for survival stakes. 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. I'm not going anywhere." 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. 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.

Mr Kwarteng had been due to return to the UK from the annual International Monetary Fund meeting later on Friday, but hasty changes were made.

The fact they are not lefty, anti-government, the fact they have been spooked, is something that should be taken incredibly seriously." And I make no apologies for that, there has to be some sort of fiscal discipline," he said. a global set of challenges..." She said: "The markets are not woke, the markets are not left. [What on earth is happening in UK markets?](https://news.sky.com/story/what-on-earth-is-happening-in-uk-markets-and-why-is-the-bank-of-england-struggling-to-address-it-12717905) [What are bonds and where do they fit in the mini-budget crisis?](https://news.sky.com/story/what-are-bonds-how-are-they-different-to-gilts-and-where-do-they-fit-in-the-mini-budget-crisis-12706902) ['Don't prolong the pain'](https://news.sky.com/story/dont-prolong-the-pain-imf-criticises-uk-government-for-undermining-bank-of-england-12719480) [mini-budget announcement](https://news.sky.com/story/chancellor-to-set-out-debt-plan-three-weeks-earlier-than-planned-12717252) at the end of September, the UK's financial markets have been reeling, with the Bank of England forced to intervene to restore some sense of stability. "You have to make sure that you know the public is getting value for money. On his return, the chancellor is likely to find a significant section of his mini-budget re-drawn following days of open revolt among Tory MPs and an expectation that another major U-turn is on the cards. Pressed on why there was a need for a last-minute schedule change, a Treasury source insisted that it was for talks on "the medium-term fiscal plan". [Mr Kwarteng](https://news.sky.com/topic/kwasi-kwarteng-9579) had been due to return to the UK from the annual IMF meeting later on Friday, but hasty changes were made. A source close to him dismissed suggestions that this represented a sign of panic and insisted that the chancellor's focus was the medium-term fiscal plan. Mr Kwarteng had been due to return to the UK from the annual International Monetary Fund meeting later on Friday, but hasty changes were made.

Kwarteng, who is in Washington DC for meetings with International Monetary Fund (IMF), is under pressure to backtrack on the £45bn of unfunded tax cuts he ...

Truss said in her speech to the Conservative Party conference in Birmingham last week that she and Kwarteng, who are long-standing allies as fellow low-tax Conservatives, were in “lockstep” on their plans for the economy. “If the evidence is that you need recalibration it is right for the government to do so.” Truss must know that forcing him out would leave her isolated and her authority in tatters, but the scale of the damage both to the country’s reputation and her party’s standing means she may conclude she has no choice. This follows her extremely ill-received appearance before Conservative backbenchers at the 1922 Committee on Wednesday night (12 October), where MPs described her attempts to reassure them as “appalling”. I will come up with the medium-term fiscal plan on 31 October as I said earlier in the week and there’ll be more detail there.” Insiders said that the Prime Minister was in crisis talks about the Budget.

The PM is understood to be looking at increasing corporation tax next year in a bid to calm market turmoil after the Chancellor's mini-Budget.

“The market is going to dictate this, primarily because we want to see stability,” she said. She could end up being a lame duck after a month-and-a half,” the MP said. [mini-Budget](https://inews.co.uk/news/liz-truss-kwasi-kwarteng-u-turn-mini-budget-tax-cuts-1909021?ico=in-line_link), with many now believing Ms Truss will be forced to row back on the plans as it is already priced into the markets. Downing Street said “work is ongoing between the Chancellor and the Prime Minister, as you’d expect, ahead of the medium-term fiscal plan” but a spokeswoman refused to be drawn on the nature of the discussions or the possible scrapping of the corporation tax commitment. But while he was away, [imminent U-turn](https://inews.co.uk/news/liz-truss-kwasi-kwarteng-u-turn-mini-budget-tax-cuts-1909021?ico=in-line_link) when asked whether he would undo his decision to cancel a rise in corporation tax, by telling the Telegraph: “Let’s see.”

Speculation is growing that government will follow Rishi Sunak's proposal for hike in corporation tax.

The source said: “He really feels that fiscal responsibility is absolutely core to what we're trying to do.” The Telegraph understands that [vast polling lead](https://www.telegraph.co.uk/politics/2022/10/13/just-nine-per-cent-have-favourable-view-liz-truss/) enjoyed by Labour and the market fallout from the tax-cutting mini-Budget. [going nowhere](https://www.telegraph.co.uk/politics/2022/10/13/kwasi-kwarteng-insists-not-going-anywhere-liz-truss-set-reverse/)” and said he was enjoying his time at the Treasury. Senior government officials have been pushing hard for the change. [will be scrapped](https://www.telegraph.co.uk/politics/2022/10/13/politics-latest-news-tory-rebels-fire-critcising-liz-truss/).

The chancellor, who was due to meet counterparts today at the International Monetary Fund (IMF), confirmed he would head back to London overnight. Treasury ...

They added that the They stressed that his top priority was fiscal responsibility. He had appeared at a British embassy reception after meetings with US and other officials at the IMF annual meeting.

Speaking on the sidelines of the International Monetary Fund's annual meetings in Washington, the chancellor said any turmoil after the central bank ...

Steven Major, head of fixed income research at HSBC, said another option to ease congestion in the markets would be for the Debt Management Office, which is part of Dr Kwarteng’s Treasury, to change its funding plans. They pointed out that those programs required funds to go through the commercial banks and those lenders could be uncomfortable taking risk onto their balance sheets even temporarily. The BoE was offering to buy up to £10 billion of bonds on Thursday and Friday. The Bank has got to keep within the guardrails – its framework and long-term policy mechanism.” The hard deadline raises the risk of more market chaos that could result in some so-called liability-driven investment strategies fail and would heap pressure on Dr Kwarteng to unveil a revised set of tax and spending plans. Senior Tories are also urging the chancellor to rip up his mini-budget to avoid a financial crisis.

Pressure mounts on Liz Truss to U-turn over her fiscal plans as the chancellor cuts short his US trip.

However, he said Mr Kwarteng should remain chancellor and refused to accept recent market turmoil was due to a "mistake" by the government. He added that a U-turn would be a "complete betrayal of that she believed in" and he believed it would not happen. Scottish Conservative leader Douglas Ross called on the prime minister and chancellor to "get a grip" on the economy. I don't think that's reassuring." Former minister Johnny Mercer called for a "course correction" from No 10, describing the impact of rising mortgage rates on people who want to buy a home as "unconscionable" and "politically unsurvivable". Alicia Kearns, the new chairwoman of the Commons Foreign Affairs Committee, said the government had to "adapt" during a "crisis".

The Chancellor has scrapped meetings in the USA to fly back home early as Liz Truss fends off a leadership challenge from two former rivals.

The fact they are not lefty, anti-government, the fact they have been spooked, is something that should be taken incredibly seriously.” Liz Truss is expected to scrap parts of her mini-budget amid growing pressure on the Prime Minister to rescue her administration. And I make no apologies for that, there has to be some sort of fiscal discipline.” One senior Tory told PA that any move to replace Ms Truss would be “completely bonkers” and “premature”, while a staunch ally of Ms Truss, Sir Christopher Chope, insisted on BBC Newsnight that she would not be forced by the “anti-growth coalition” into a humiliating retreat on corporation tax. It appears another U-turn is on the cards. Former Tory chancellor and party grandee Ken Clarke said that Ms Truss could not be able to make Mr Kwarteng a “scapegoat”, but it comes amid mounting anger and unrest within the Conservatives about the crisis of recent weeks.

Shares and government bonds rally on hopes of U-turns on the UK's fiscal plans; Royal Mail to cut up to 10000 jobs.

In Asia, stock markets have rallied on hopes of more Chinese stimulus and speculation about more U-turns on the UK’s fiscal plans. • Owing to the market turmoil that has followed the announcement of the mini-budget, risks are rising that the recession in the UK is deeper than we forecast. He spent two days there, and was publicly dressed down by Janet Yellen, the US Treasury secretary, at a meeting of G7 finance ministers and central bank governors, who warned that tax cuts that required extra borrowing posed a risk to financial stability. The 30-year yield has also fallen further, by 14 basis points to 4.4% while the 20-year yield is at 4.6%. It would be challenging to deliver the scale of these cuts, but for them to be credible, these need to be delivered sooner rather than in the latter part of the forecast. The number of people defaulting on their loan payments is already increasing which suggests worse is to come. Higher interest rates and the nerve-wracking economic outlook, which has been compounded by the higher-than-expected inflation reading in the US this week, are all contributing to a lower risk appetite for lenders. Chancellor Kwasi Kwarteng won’t be blind to the effect flying home from his Washington DC trip early will have – there is allegedly no precedent for a chancellor returning early from the IMF event for personal reasons. We expect the BoE to hike 100bps in November and raise rates to 4.5% by early 2023. Despite assertions from the Bank of England to the contrary, we expect that the UK’s central bank will extend in some form its bond-buying support beyond Friday’s self-imposed deadline. UK government bonds (gilts) are in focus today with the Bank of England set to end its market intervention at 4.30pm BST. The big question is whether pension funds have done enough over the last fortnight in terms of fundraising, reducing leverage, and increasing capital buffers.

The Chancellor returns to UK for crisis talks with PM following weeks of economic turmoil.

On whether Mr Kwarteng’s plan on corporation tax would now be torn up, he insisted: “The Chancellor, the Prime Minister, are absolutely determined to stick to their plans but let’s wait for how this will all pan out in the wider scheme in the medium-term fiscal plan before the end of the month.” Despite growing calls from Tory MPs for large sections of the mini budget to be junked, Mr Hands added: “The Prime Minister and the Chancellor are absolutely resolute, determined, the growth plan the centrepiece but we will have to see some of the detail, including a full forecast from the Office for Budget Responsibility on October 31.” With the Tories now trailing Labour by around 25 points in the polls, Former Tory leader Lord Hague also stressed: “The reaction of voters, the opinion of Members of Parliament, in matters like this the reaction of financial markets, you don’t have to please all of those people all of the time, but you can’t have all three of those against you.”

Truss government is facing enormous pressure after unveiling massive package of unfunded tax cuts last month.

to come back a day early from an international visit." But it is now considering another humiliating U-turn — this time on the decision to cancel former Chancellor Rishi Sunak's plan of raising corporate taxes to 25 percent from 19, according to local media. Britain's Chancellor of the Exchequer Kwasi Kwarteng took an early flight back to London from a U.S.

Chancellor makes early return from IMF meeting in Washington amid rumours around his job and that of prime minister Liz Truss.

The growth plan (is) the centrepiece, but we’ll have to see some of the detail including a full forecast from the Office for Budget Responsibility on the 31st of October. The government will make responses as appropriate as events happen, but the absolute commitment is to publish the medium-term fiscal plan. He’s coming back for discussions with colleagues, we obviously have the medium-term fiscal plan coming up on 31 October, so just in a couple of weeks’ time. But that’s not to say that we can’t reset and I think there is the time to do that. He said he hopes Kwarteng is flying home from the US early to have conversations with Liz Truss and row back on tax cuts. It was more likely to lead I’m afraid in the kind of lack of confidence that’s been in the markets over the last few weeks. The fact that people were speculating about the prime minister’s leadership this early in her premiership is not ideal but I think he’s just got to bite the bullet. It quoted one senior Tory as saying that a “coronation won’t be that hard to arrange”. Markets have seen some stabilisation on the news of a potential U-turn, Stride told BBC Breakfast. “It is quite unusual for this to happen,” he said. Weighed down by huge global problems, Callaghan told reporters at Heathrow “I don’t think other people in the world would share the view that there is mounting chaos.” Beleaguered chancellor Kwasi Kwarteng’s sudden return to London recalls the troubles faced by prime minister James Callaghan in January 1979.

The chancellor is returning to the UK a day early from IMF meetings in the United States as calls for him and Liz Truss to go mount - and the Bank of ...

And, you know, the British people deserve so much better than what this government is putting the country through." "She was our choice for the Conservative Party just a few weeks ago. Kwasi Kwarteng is our team." ['Government in meltdown' as expectation of mini-budget U-turn mounts - politics updates](https://news.sky.com/story/politics-latest-tory-mps-had-heads-in-their-hands-after-liz-truss-meeting-labour-tells-government-to-go-back-to-drawing-board-on-economy-12593360) "More than half of the measures in the mini-budget were measures we oppose," he added. "What we do need to do is the Conservative Party does need to unite behind our prime minister," he said.

Mr Kwarteng is flying home early from Washington DC after days of open revolt among Tory MPs over his economic plan. Prime Minister Liz Truss is facing calls to ...

Now it's thought the government may have to U-turn and go through with the increase after all. - The government has already made a U-turn on plans to abolish the 45p top rate of income tax, paid by people earning more than £150,000 a year. A key plank of Ms Truss's Tory leadership pitch was ditching the rise to the tax, which was set to increase from 19% to 25% in 2023. The tense atmosphere in Westminster was apparent as the BBC spoke to dozens of sources across Parliament and the government on Thursday. There has been speculation the government could reverse its policy of scrapping a planned rise in corporation tax, which is a tax on the profits of UK limited companies. He was forced to scrap plans to cut the top rate of income tax, which made up just £2bn of the package.

Chancellor leaves IMF meetings early but trade minister Greg Hands downplays significance.

It is time his Chancellorship was put out of its misery, along with his disastrous botched budget." [Terms of use,](https://www.independent.co.uk/service/user-policies-a6184151.html) [Cookie policy](https://www.independent.co.uk/service/cookie-policy-a6184186.html) and [Privacy notice.](https://www.independent.co.uk/service/privacy-policy-a6184181.html) [Privacy policy](https://policies.google.com/privacy?hl=en) and [Terms of service](https://policies.google.com/terms?hl=en) apply. This site is protected by reCAPTCHA and the Google By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Registration is a free and easy way to support our truly independent journalism "The major meat of the meetings of the IMF and World Bank have finished." “This is looking at how the Government is going to pay for everything, how the Government is going to set its budget in the coming years and that will be laid out in just two weeks’ time.” [corporation tax](/topic/corporation-tax) costing tens of billions of pounds is thought to be in the crosshairs in a desperate bid to restore confidence in the UK's finances. The financial chaos has led to surging government borrowing costs, higher mortgage rates, and a tanking Pound – and has required multiple interventions by the Bank of England. The chancellor has been in the US for meetings of the World Bank and the [Kwasi Kwarteng](/topic/kwasi-kwarteng) is urgently returning to London a day early as the government discusses whether to ditch more of the taxes policies in his [budget](/topic/budget).

The Chancellor flew home early from a trip to the US to discuss the mini-budget and subsequent backlash with the Prime Minister.

According to reports, Mr Kwarteng is not expected to appear at that conference. “Enough is enough. “People are angry, fed up and worried about the future. It didn't suddenly start with Kwarteng but it must end now. Sky News is now also reporting that Kwasi Kwarteng has been sacked as Chancellor, after reports from the BBC that Mr Kwarteng is no longer in post. wasi Kwarteng is no longer the Chancellor, according to reports from the BBC.

Liz Truss is set to sack Kwasi Kwarteng as Chancellor, it has been claimed, as the Prime Minister prepares to announce she is ripping up her mini-Budget.

Ms Truss had pledged to scrap a corporation tax hike from 19 per cent to 25 per cent which had been scheduled for April next year by Rishi Sunak when he was chancellor. The about-turn means she is abandoning one of the flagship tax cut promises from her Tory leadership campaign. Ms Truss will use the press conference to announce that corporation tax will rise to 25 per cent this spring.

While Kwasi Kwarteng said "100 percent, I'm not going anywhere", Prime Minister Liz Truss was reportedly casting around for a replacement chancellor of the ...

On Wednesday, she appeared in parliament for the first time since the contentious mini-budget and told MPs she was "absolutely" committed to maintaining current spending. Truss has enjoyed the shortest honeymoon period of any British political leader in living memory – so much so that The Economist this week said she had "the shelf-life of a lettuce". UK PM Liz Truss and finance minister Kwasi Kwarteng announced on Monday morning that they have reversed plans to cut the highest rate of income tax that helped to spark a rebellion in her party and turmoil in financial markets— The New Arab (@The_NewArab) The front pages for Friday's newspapers offered no relief for Truss with The Times reporting of a "plot" to replace Truss and Kwarteng while the Daily Mail had "PM 'has 17 days to save her job'". Kwarteng and Truss have been on the back foot ever since unveiling on 23 September a "mini-budget" that spooked the financial markets and heaped further pressure on UK households battling a cost-of-living crisis. [Kwasi Kwarteng](https://english.alaraby.co.uk/news/uks-kwarteng-secretly-met-saudi-oil-firms-report) said "100 percent, I'm not going anywhere", Prime Minister [Liz Truss](https://english.alaraby.co.uk/news/uk-greenpeace-protesters-disrupt-trusss-conference-speech) was reportedly casting around for a replacement chancellor of the exchequer to avert threats to her own job.