Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Kwasi Kwarteng: We must ‘stay the course’ with tax-cutting plan

Kwasi Kwarteng is due to address the Tory conference (PA)
Kwasi Kwarteng is due to address the Tory conference (PA)

Kwasi Kwarteng will seek to calm the markets, defend his plan to boost UK economic growth and secure his position as Chancellor in a crunch Conservative Party conference speech.

The Chancellor’s mini-budget triggered turmoil in the City, was criticised by the International Monetary Fund and resulted in a £65 billion emergency intervention by the Bank of England to restore order.

But he will tell activists on Monday that “we must stay the course” with his plans to avoid a future of “slow, managed decline”.

Prime Minister Liz Truss and Chancellor Kwasi Kwarteng (Dylan Martinez/PA)

The plan to axe the 45% income tax rate for top earners and scrap the curbs on bankers’ bonuses at a time when many households face a cost-of-living crisis has been condemned by political opponents and Tory critics, with Mr Kwarteng bearing the brunt of the criticism.

Prime Minister Liz Truss was accused of throwing Mr Kwarteng under a bus by singling him out as responsible for the tax cut, saying “it was a decision the Chancellor made”, rather than one debated by the entire Cabinet.

In his speech in Birmingham, Mr Kwarteng will insist the gamble made by the Tories to cut taxes and axe red tape in the hope of increasing economic growth to an annual trend of 2.5% was the correct approach.

And he will highlight the strength of the dollar as a problem facing all economies, rather than one confined to the UK, which saw the pound fall to a record low against the US currency after the mini-budget before regaining ground.

He will say that “major currencies” are “wrestling an incredibly strong US dollar”.

The speech will be keenly watched in the City of London although it is expected to be delivered around 4pm, shortly before the markets close.

Mr Kwarteng will say: “I refuse to accept that it is somehow Britain’s destiny to fall into middle income status or that the tax burden reaching a 70-year-high is somehow inevitable.

“It isn’t, and shouldn’t be.

“We needed a new approach, focused on raising economic growth.

“That is the only real way to deliver higher wages, more jobs, and crucially, revenue to fund our precious public services and it is the only way to achieve long-term fiscal sustainability.

“We must stay the course. I am confident our plan is the right one.”

Mr Kwarteng will say his plan is “sound, credible and will increase growth”, making that “my promise to the people of this country”.

Setting out his “new economic deal” he will attempt to convince lenders that he has a plan to manage the Government’s debt with an “iron-clad commitment to fiscal discipline”.

The Government will be “wholly committed to economic growth”, delivering “more businesses, more jobs, higher pay” and ultimately “more money for public services”.

But his speech comes with Ms Truss failing to rule out cuts in public spending to help balance the books and the possibility of benefits facing a real-terms cut as earners on more than £150,000 see their taxes slashed.

Mr Kwarteng will say: “You cannot have a strong NHS without a strong economy. You cannot have good schools without a strong economy. You cannot have quality infrastructure without a strong economy.

“With this plan, we are aiming for 2.5% annual trend growth. We did it before. We can do it again.”

The Chancellor is expected to set out further details of his reforms, including the so-called “Big Bang 2.0” package of financial regulation, within the coming weeks ahead of a “medium-term fiscal plan” on November 23, which will be accompanied by the Office for Budget Responsibility’s forecasts.