Kwasi Kwarteng blames ‘pressure’ of Queen’s death for botched mini-budget

Kwasi Kwarteng has blamed the “pressure” of the Queen’s death for mistakes in the mini-budget which has plunged the Tory party in crisis.

“We had a nation in mourning and then, literally, four days after the funeral we had the mini-budget,” the chancellor said.

“It was a high speed, high pressure environment and we could, as David Cameron used to say, have prepared the pitch a bit better.”

Mr Kwarteng also sparked fresh confusion over his next financial statement, saying: “It’s going to be 23 November,” – despite the Treasury briefing it has been brought forward to October.

And he said the scrapping of the 45p tax rate for top earners has merely been “postponed”, before correcting himself to say: “We have decided not to proceed with it.”

The chancellor is fighting for his political life after being forced into the humiliating U-turn over the 45p rate and – it appeared – the long wait for his plan to get a grip on rising debt.

Many Conservatives blame him for the own goal of rushing ahead with massive unfunded tax cuts without a proper plan to calm the panicking financial markets.

But Mr Kwarteng, asked on GB News, what he could have “done differently”, replied: “It was a very quick time that we did it.”

“You have got to remember the context. What was extraordinary about that month was we had a new government and also we had the sad passing of her majesty Queen Elizabeth II.”

Angela Rayner, Labour’s deputy leader, attacked the comments, saying: “Instead of taking responsibility for their reckless mishandling of our economy, at every turn the prime minister and her chancellor try to shift blame elsewhere.”

And Sarah Olney, the Liberal Democrat Treasury spokesperson, said: “This really is a new low for the chancellor in a desperate effort to excuse his botched budget.”

The chancellor also admitted – after days of denial by ministers – that his “budget”, as he called it, was partly to blame for the pound crashing and the cost of state borrowing soaring.

“There was a global picture, but I don’t deny that there was some market reaction to the budget because it was a bold offer,” he said.

Mr Kwarteng denied the measures were “extreme” – and argued the budget had been a success on one level, despite the economic and political damage.

“We have shifted the debate and I’m hopeful that, over the next few weeks, things will stabilise,” he told the TV channel.

“Nobody is arguing that we should put up Corporation Tax,” he claimed, although opposition parties have attacked scrapping the plan to lift the rate to 25 per cent.

Despite Mr Kwarteng saying his Medium Term Fiscal Plan will still be revealed on 23 November, it is understood the plan is to bring it forward.

The pound rose on the briefing of an October statement – raising the prospect of a further adverse market reaction to even the hint of a seven-week wait.