Labour’s Rachel Reeves says Kwarteng in ‘dangerous state of denial’ over impact of mini-budget – UK politics live | Politics
Labour’s Rachel Reeves accuses Kwarteng of being in ‘dangerous state of denial’ over impact of mini-budget
Rachel Reeves, the shadow chancellor, asks if Kwarteng and his team are the last people on earth who think the growth plan is working.
Kwarteng says the IMF has said the tax cuts will boost growth. He accuses Labour of being part of the anti-growth coalition.
Reeves says Kwarteng is in a “dangerous state of denial”. Mortgages could go up by £500 per month. Will the chancellor reverse the budget?
Kwarteng challenges Labour to say which tax cuts it would reverse. And he says Reeves should get her facts right. The IMF says the tax cuts will help growth, he says.
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Kwarteng says the levelling up secretary, Simon Clarke, will give a statement to MPs about how the investment zones plan will work.
And that’s it. Treasury questions is over.
The contributions from Tory MPs were a lot more sceptical than they normally are on these occasions, but none of them really monstered the chancellor. Given the circumstances, he may feel he got off relatively lightly.
Steve Brine (Con) asks for an assurance that the fisal plan will contribute to market confidence.
“It will be relentlessly upbeat,” says Kwarteng. “There will be an absolutely iron commitment to fiscal responsibility.”
Sarah Olney (Lib Dem) says Kwarteng was warned that unfunded tax cuts would push up mortgage rates. What is he going to do about this. “It is not acceptable that his incompetence is risking people’s livelihoods,” she says.
Kwarteng says it was right to help people with energy costs.
Kwarteng dodges question when asked to explain if IFS wrong to say mini-budget requires cuts worth £60bn
Mark Harper, the former Tory chief whip, asks about the IFS report out this morning says the mini-budget plans would require cuts of £60bn. (See 9.10am.) He asks Kwarteng to say why he disagrees with this, assuming he does.
Kwarteng declines, saying it would be wrong to “pre-judge” what will be in the fiscal plan at the end of the month.
Labour’s Rachel Reeves accuses Kwarteng of being in ‘dangerous state of denial’ over impact of mini-budget
Rachel Reeves, the shadow chancellor, asks if Kwarteng and his team are the last people on earth who think the growth plan is working.
Kwarteng says the IMF has said the tax cuts will boost growth. He accuses Labour of being part of the anti-growth coalition.
Reeves says Kwarteng is in a “dangerous state of denial”. Mortgages could go up by £500 per month. Will the chancellor reverse the budget?
Kwarteng challenges Labour to say which tax cuts it would reverse. And he says Reeves should get her facts right. The IMF says the tax cuts will help growth, he says.
Kwarteng implies decision on uprating benefits will be announced by end of October
The question session has now moved to topical questions. This is more of a free-for-all. Ministers do not have to address the questions on the order paper, which were tabled well in advance.
Kwasi Kwarteng starts by confirming that the fiscal plan will be published on 31 October, with an OBR forecast published alongside it.
Asked why the government would not honour the promise of the last government to uprate benefits in line with inflation, Kwarteng says the government is going through the process. But he says more information will be available at the time of the fiscal plan.
Julian Smith, the former Tory chief whip, asks for an assurance that the govenrment will not balance the books “on the backs of the poorest people in the country”.
Philp says the government wants to ensure that the economy is growing, helping all people get higher wages.
Richard Fuller, a Treasury minister, says he will look at the loan charge issue. He says all MPs who have met consituents affected will have been moved by their stories.
Kwarteng says the Office for Budget Responsibility is held in “wide respect” around the world. He says he views its independence as “sacrosanct”.
UPDATE: Steven Swinford from the Times says some of Kwarteng’s Tory colleagues think differently.
Kwasi Kwarteng says that the OBR commands ‘wide respect’, not only from him but around the World
But his cabinet colleagues are privately derisive about it, saying it should not be treated as if it is God & that it is frequently wrong https://t.co/KKzYsARMt0
— Steven Swinford (@Steven_Swinford) October 11, 2022
Kwarteng warned by senior Tories not to include measures in ‘fiscal plan’ unless he is confident MPs will pass them
Mel Stride, the Tory chair of the Commons Treasury committee, says Kwarteng should only announce measurse in his fiscal plan at the end of the month if he is confident that he will be able to get them through the house.
Kwarteng says Stride is doing a “brilliant job” and he says Stride has offered “wise counsel”. (He does not sound 100% sincere at this point – Stride has been one of his strongest Tory critics.) Kwarteng says he will consult on his plans.
Warning from Tory MP Mel Stride, who says the chancellor must get full support for medium-term growth plan, and any failure to win votes in parliament will “unsettle markets”.
Kwarteng promises he “will canvass opinion widely ahead of the publication of the plan:
— Aubrey Allegretti (@breeallegretti) October 11, 2022
Steve Doughty (Lab) says the Bank of England has intervened three times in the markets now. His consituents are worried about their pensions, he says.
Kwasi Kwarteng says he speaks to the governor of the Bank frequently. The governor is managing a global situation “very effectively”.
Florence Eshalomi (Lab) says the suggestion that someone earning £30,000 a year can buy a home in London is insulting. She is referring to a Treasury tweet.
Griffith says he will write to Eshalomi about all the government is doing to help her constituents.
Andrew Griffith, a Treasury minister, says lifting the cap on banker’s bonuses is not about increasing their overall pay. The cap had the effect of lifting basic pay, he says.
Marsha de Cordova (Lab) says that is “nonsense’”.
Griffith says de Cordova has booked her place as a member of the anti-growth coalition.
He says in 1979 the top 1% of earners paid 10% of income tax. Now they pay 29%, he says.
Kevin Hollinrake (Con) asks for an assurance that infrastructure spending will not be cut.
Philp says the government wants to speed up spending on critical infrastructure.
