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UK's Kwarteng promises to bring spending under control

Published 30/09/2022, 22:12
Updated 30/09/2022, 23:10
© Reuters. FILE PHOTO: New British Chancellor of the Exchequer Kwasi Kwarteng walks outside Number 10 Downing Street, in London, Britain September 6, 2022. REUTERS/Toby Melville

© Reuters. FILE PHOTO: New British Chancellor of the Exchequer Kwasi Kwarteng walks outside Number 10 Downing Street, in London, Britain September 6, 2022. REUTERS/Toby Melville

(Reuters) -The British government will make a new "commitment" to bring public spending under control following a week of financial turmoil, British finance minister Kwasi Kwarteng said in an op-ed in The Telegraph on Friday.

Kwarteng vowed to publish a "credible" plan in November to reduce debt. He also doubled down on his mini-budget, writing that while some measures may not be universally popular "we had no other choice."

Kwarteng unveiled a string of lower taxes last week that were, unusually, not accompanied by forecasts from the Office for Budget Responsibility (OBR). Sterling fell to a record low against the U.S. dollar and the sell-off led the Bank of England to intervene with emergency bond-buying to protect pension funds from partial collapse.

© Reuters. FILE PHOTO: New British Chancellor of the Exchequer Kwasi Kwarteng walks outside Number 10 Downing Street, in London, Britain September 6, 2022. REUTERS/Toby Melville

In his article in the newspaper, Kwarteng wrote: "The Medium-Term Fiscal Plan will set out a credible plan to get debt falling as a share of GDP in the medium term, with new fiscal rules and a commitment to spending discipline. And this will be alongside a full forecast from the Office for Budget Responsibility."

British Prime Minister Liz Truss said on Friday she recognised there had been some financial market disruption following the government's so-called mini budget and that it was important monetary and fiscal policy are coordinated.

Latest comments

By printing even more money no doubt!
Or——They could tax the last Chancellor of the Exchequers wife…?
The bank won’t do it, they know they can’t print like the Americans.
all thanks to the great trade master (milena ayrton,) another £5,000 dollars gained.
How Kwasi? Will you raise taxes on poor people so you can fund the 45% tax cut on rich people?
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