Kwasi Kwarteng cuts short US trip as Liz Truss faces crisis with expected tax reversal
Chancellor Kwasi Kwarteng has cut short a trip to Washington and is returning to the UK for crisis talks over the disastrous mini-budget.
Mr. Kwarteng was in the US capital for this week's global finance ministers meetings, but is now returning home early to work on the government's medium-term financial plan.
Liz Truss has been given 17 days to save her job as PM by mutinous Tories, with the whips warning she could face a leadership challenge if the Chancellor's Halloween financials fail fail to calm the economic turmoil.
The Prime Minister is considering further reversals of her crisis-hit economic plan, which has led the pound to fall to record lows against the dollar and forced the Bank of England to intervene to strengthen financial markets.< /p >
Mr. Kwarteng is due to release its medium-term budget plan on October 31, along with an independent budget forecast.
But speculation is rife that the Chancellor and Prime Minister may reject their bid to scrap a planned corporate tax hike, another key part of the mini-budget.
A Treasury spokesman said Mr Kwarteng spent two "successful" days at the annual meetings of the International Monetary Fund and the World Bank before returning home to "work at pace" on the budget plan at medium term.
Picture:
Simon Walker/Her Majesty's Treasury)Friday is set to be a crisis day in financial markets, with the end of the Bank of England's emergency bond buying programme.
Trade Minister Greg Hands claimed it was "not unusual" to return early from an international visit, but hinted a U-turn was in the offing.
When asked if any more U-turns were to come, he told Sky News: "Let's wait and see. You won't have long to wait until October 31 for the Chancellor to outline those plans. I say that the Prime Minister and the Chancellor are absolutely resolute, determined.
"The growth plan (is) the centerpiece, but we'll have to see some details, including a full forecast from the Office for Budget Responsibility on October 31."
Mr. Hands said the Prime Minister had "complete confidence" in the Chancellor and said he was "an incredibly capable person, a very, very bright person who exercises good judgment".
When asked if his position was tenable, Mr Hands replied: "Totally. I mean, Kwasi Kwarteng himself said yesterday that he was 100% sure he would always post. I know the Prime Minister has complete confidence in Kwasi Kwarteng.”
Mr. Hands dismissed the idea that Ms Truss had 17 days to save her job and told LBC: 'The Prime Minister has my confidence.
It comes after the government was forced to backtrack on plans to scrap the top rate of income tax of 45p, with other parts of the mini-budget under threat as the PM s trying to reassure the markets and save his administration.
Ms Truss' key promise to scrap the planned corporate tax hike from 19% to 25% is widely seen as a likely casualty...
Chancellor Kwasi Kwarteng has cut short a trip to Washington and is returning to the UK for crisis talks over the disastrous mini-budget.
Mr. Kwarteng was in the US capital for this week's global finance ministers meetings, but is now returning home early to work on the government's medium-term financial plan.
Liz Truss has been given 17 days to save her job as PM by mutinous Tories, with the whips warning she could face a leadership challenge if the Chancellor's Halloween financials fail fail to calm the economic turmoil.
The Prime Minister is considering further reversals of her crisis-hit economic plan, which has led the pound to fall to record lows against the dollar and forced the Bank of England to intervene to strengthen financial markets.< /p >
Mr. Kwarteng is due to release its medium-term budget plan on October 31, along with an independent budget forecast.
But speculation is rife that the Chancellor and Prime Minister may reject their bid to scrap a planned corporate tax hike, another key part of the mini-budget.
A Treasury spokesman said Mr Kwarteng spent two "successful" days at the annual meetings of the International Monetary Fund and the World Bank before returning home to "work at pace" on the budget plan at medium term.
Picture:
Simon Walker/Her Majesty's Treasury)Friday is set to be a crisis day in financial markets, with the end of the Bank of England's emergency bond buying programme.
Trade Minister Greg Hands claimed it was "not unusual" to return early from an international visit, but hinted a U-turn was in the offing.
When asked if any more U-turns were to come, he told Sky News: "Let's wait and see. You won't have long to wait until October 31 for the Chancellor to outline those plans. I say that the Prime Minister and the Chancellor are absolutely resolute, determined.
"The growth plan (is) the centerpiece, but we'll have to see some details, including a full forecast from the Office for Budget Responsibility on October 31."
Mr. Hands said the Prime Minister had "complete confidence" in the Chancellor and said he was "an incredibly capable person, a very, very bright person who exercises good judgment".
When asked if his position was tenable, Mr Hands replied: "Totally. I mean, Kwasi Kwarteng himself said yesterday that he was 100% sure he would always post. I know the Prime Minister has complete confidence in Kwasi Kwarteng.”
Mr. Hands dismissed the idea that Ms Truss had 17 days to save her job and told LBC: 'The Prime Minister has my confidence.
It comes after the government was forced to backtrack on plans to scrap the top rate of income tax of 45p, with other parts of the mini-budget under threat as the PM s trying to reassure the markets and save his administration.
Ms Truss' key promise to scrap the planned corporate tax hike from 19% to 25% is widely seen as a likely casualty...
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