Kwasi Kwarteng: The British government doesn't want to bring forward the budget after all

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British Chancellor of the Exchequer Kwasi Kwarteng: statement misinterpreted

Photo: TOBY MELVILLE / REUTERS

There is a crisis in Great Britain's freshly assembled government.

Finance Minister Kwasi Kwarteng has denied reports that he intends to bring forward the presentation of his budget.

A statement he made the night before at the British Conservative Party conference in Birmingham had been misinterpreted, the politician told GB News.

Kwarteng had said the budget would be published "soon."

But by that he meant November 23, Kwarteng clarified.

Flight of investors should be stopped

Several British media had previously reported, citing insiders, that the government wanted to bring forward the budget in order to regain financial market confidence.

The government wants to explain how the controversial tax cuts will be financed.

The hope is that this will stop the flight of investors, stabilize the pound and halt the decline in government bonds.

An announcement of far-reaching tax cuts, which should primarily benefit high earners, had previously caused turbulence on the financial markets - mainly because it is not clear how they are to be financed.

The government therefore felt compelled to make a U-turn on Monday and at least withdrew the planned abolition of the top tax rate.

The exchange rate of the British pound against the dollar plummeted.

The Bank of England was forced to buy long-dated government bonds to keep pension funds from collapsing.

The conservative ruling party's polls plummeted.

But there is already more conflict in the conservative Tory party.

Pressure is mounting on PM Truss to adjust welfare payments for inflation, as announced by her predecessor Boris Johnson.

So far, Truss has carefully avoided repeating that promise in interviews.

muk/dpa