Tories roared with laughter tonight as Kwasi Kwarteng joked about the economic chaos caused by his botched mini-Budget, sparking widespread fury.
And the arrogant Chancellor even dismissed the fallout of his proposed tax cuts for the rich – leaving homeowners struggling with soaring mortgages – as a “hullabaloo”.
His bid to make light of the carnage came after he finally did a U-turn on scrapping the 45p top tax, while facing a Tory revolt on the policy
But the sorry saga is no laughing matter for millions of Brits plunged into financial turmoil by Mr Kwarteng’s reckless gamble with the economy, as he vows to plough on with benefits cuts for the poorest.
Image:
Getty Images)The Chancellor refused to quit over his blunder that would have bunged £10,000 a year to top earners.
But critics warned the damage has already been done after the Bank of England stepped in with a £65billion to save pension from collapsing.
Pressure mounted on Mr Kwarteng and Liz Truss after former Culture Secretary Nadine Dorries demanded the PM now calls a general election as she has no mandate on policies.
Image:
PA)Just a day earlier, Ms Truss had insisted the tax cuts would go ahead.
But after his screeching U-turn, a sweat-drenched Chancellor joked at the Tory conference “what a day”.
As laughter emanated across the hall in Birmingham, he added: “I know the plan put forward only 10 days ago caused a little turbulence.”
Shadow Chancellor Rachel Reeves tonight accused Mr Kwarteng of inflicting a “huge economic body-blow” on workers. She said his U-turn had come “too late for the families who will pay higher mortgages and higher prices for years to come”.
Image:
REUTERS)And Lib Dem Sarah Olney said: “Laughing about the turbulence caused by this botched budget is an insult to the millions facing spiralling mortgage costs. His words will bring cold comfort to struggling families.”
But the Chancellor later brushed off the criticism. He told an event tonight: “Beyond the hullabaloo about the statement, many business people have said you’re doing the right thing.”
Asked if he had considered resigning, Mr Kwarteng said today: “Not at all.”
Image:
AFP via Getty Images)And in an interview he was told if he ran a company and “made a mistake of this magnitude, you’d be fired”. But Mr Kwarteng replied: “I don’t think that’s the case at all.”
Downing Street insisted Ms Truss continued to have confidence in him. Senior Tories led by Michael Gove urged No10 to scrap a plan to take £1,000 in benefits from working families. Former welfare minister Esther McVey insisted it would be a “huge mistake”.
Co-author of the Tory 2019 manifesto, Rachel Wolf, insisted Ms Truss only became PM because she pledged to continue Boris Johnson ’s work.
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But she said the party leader has junked everything he stood for. Johnson loyalist Ms Dorries said there was “widespread dismay” at the PM’s approach and added: “If Liz wants a whole new mandate, she must take to the country.”
Ms Truss and Mr Kwarteng hastily decided to U-turn on the wealth tax cuts after a late night meeting at a Birmingham hotel on Sunday.