Kwasi Kwarteng jokes 'what a day' after U-turn and admits Budget 'caused turbulence'

Stressed-out Kwasi Kwarteng today joked “what a day!” as he vowed to “press on” with his controversial Budget plans - despite a U-turn over tax cuts for the rich.

Visibly sweating as he spoke to the Tory conference in Birmingham, the Chancellor ran through the rest of his pledges that will be funded by £70bn of borrowing next year.

Tory members laughed as he said - after market turmoil, rising mortgage rates and a £65bn Bank of England bailout - "I can be frank. I know the plan put forward only 10 days ago has caused a little turbulence.

"I get it. I get it. We are listening and have listened, and now I want to focus on delivering the major parts of our growth package."

Shadow Chancellor Rachel Reeves said: "This speech showed us a Chancellor and a Tory Government completely out of touch. What the Chancellor called a little financial disturbance is a huge economic bodyblow to working people that will mean higher prices and soaring mortgages."

Lib Dem Treasury Spokesperson Sarah Olney MP said: "Laughing about the turbulence caused by this botched budget is an insult to the millions of people already facing spiralling mortgage costs."

Downing Street said Prime Minister Liz Truss - who was in the audience for the speech - continues to have confidence in Mr Kwarteng, despite the humiliating decision to drop the tax cut.

Mr Kwarteng told activists: "What a day. 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."

The Chancellor also vowed to stop Britain’s “slow managed declined” - after 12 years of Tory rule.

“The path ahead of us was one of slow managed decline,” he said. “But I refuse to accept it is somehow Britain’s destiny to fall back into middle league status.”

Liz Truss and Kwasi Kwarteng U-turned on their flagship policy to axe the 45p top rate of income tax - throwing the party conference into chaos.

In a sign of the panic, the PM cancelled a planned visit this morning and went into hiding, as the Chancellor was forced to re-write large chunks of his conference speech.

Mr Kwarteng told the hall: "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."

But there was a slight pause before the applause when he said “this government will always be on the side of those who need help the most" - after he refused to rule out a real-terms cut to benefits.

Tory Esther McVey warned cutting benefits to balance the books will be a “huge mistake” and “not right at all”.

David Gauke, a former Tory Work and Pensions Secretary, told The Mirror at a fringe event he would "very surprised" if the government didn't increase benefits in line with inflation.

The Commons Work and Pensions Committee today wrote to Kwasi Kwarteng demanding benefits rise by inflation - around 10% - next April.

Chairman Stephen Timms said: "Without it, countless families risk being pushed further into crushing poverty as they are forced to stretch the same money over higher prices.”

Tory MP John Glen, a former Treasury minister, slammed claims there was a need for “handouts” to stop - something Liz Truss said. He told the event: “No there isn’t, there can’t be.

“There are some people who are in such a vulnerable state, there isn’t a growth imperative or outcome that’s going to resolve that situation for that group of people this coming Autumn or winter.”