Mr Kwarteng, who was in Washington for the annual meetings of the IMF and the World Bank “is on his way home”, confirmed the British Treasury to AFP, indicating that after “fruitful meetings” he should “continue work on the medium-term budgetary plan”, the presentation of which is scheduled for 31 October.
His budget plan announced on September 23 and which provides for tens of billions of tax cuts without clear funding has destabilized the markets, caused the pound to fall and deeply weakened the government of Prime Minister Liz Truss, some elected members of his party even mentioning his replacement after 38 days in power.
Mr. Kwarteng, who said on Thursday that he would still be there in a month “at 100%”, must normally explain how he will finance his plan on October 31.
On Friday, the chairman of the Treasury Committee in Parliament Mel Stride said he was in favor of a rapid revision of his “mini-budget”.
“We have reached a stage where we need a very strong signal to the markets (to show that) fiscal credibility is firmly back,” he told the BBC.
“Do it now,” he advised the finance minister, “and make sure it’s meaningful, firm, bold and compelling.”
The cancellation of a planned increase in corporate tax would be in particular in the crosshairs.
It is also urgent that political confidence be restored.
– “Disastrous idea” –
While the Conservative Congress had already been marked at the beginning of the month by internal tensions and dissension, some Conservative elected officials are now privately mentioning names to replace Liz Truss.
A Rishi Sunak-Penny Mordaunt ticket, two candidates beaten by Ms Truss in the race for Downing Street, would be mentioned, according to the press.
Mr Sunak, a former finance minister, was the preferred candidate of Tory MPs, but the final decision lay with party members, who elected Ms Truss in early September, who then ousted the Sunak camp from government.
Britons faced with skyrocketing mortgage rates in recent weeks are losing confidence and patience.
50% want the Conservative Party to replace Ms Truss. Nearly half (43%) of voters who voted for the Conservative Party in the last election also want a new Prime Minister. 66% think party members made the wrong choice, according to a YouGov poll for The Times published on Thursday evening.
On Friday morning, Downing Street seemed ready for no change and Trade Secretary Greg Hands said there was “absolutely no plan to change anything” in the mini-budget.
“The Prime Minister and the Minister of Finance are absolutely determined to stick to their growth plan,” he said on LBC radio.
“Changing leaders would be a politically and economically disastrous idea,” Foreign Minister James Cleverly also warned on Thursday.
