Newark MP Robert Jenrick: Chancellor Kwasi Kwarteng sensible to abandon tax reduction for wealthiest

Newark MP Robert Jenrick says the financial markets need reassurance that the government has a credible plan to balance the books.

Health Minister Mr Jenrick said it was sensible for the Chancellor to abandon his proposed reduction in tax for the wealthiest.

Mr Jenrick said unfunded tax cuts were not his approach.

Mr Jenrick was responding to a request for comment on new Prime Minister Liz Truss's mini-budget based on tax cuts that has seen the worth of the pound plummet and interest rates sky rocket.

Mortgage repayments are going up and some lenders have pulled the plug on ranges of new lending.

Financial markets have reacted badly to what they see as tax cuts that don't have the rationale explained, fuelling a cost of living crisis.

The government is yet to bow to pressure and release the business case for the choices it has made.

Mr Jenrick said:"The last week has seen significant disruption on the financial markets, partly global, partly focused on the position of the UK’s public finances.

"The markets want reassurance that there is a credible plan to balance the books, that financial institutions which they believe protect the integrity of our system are in place and that the UK's fundamental strengths can be harnessed to drive sustainable long term economic growth.

"With a European war raging, economies across the world slowing or tipping into recession and energy prices continuing to be very high, it is a highly challenging environment.

"We all want a lower tax burden and I have argued for the dynamic effect of lower taxes on individuals and businesses for years.

"I also believe in sound money and careful stewardship of the public purse.

"I have long feared protracted inflation and higher interest rates.

"I argued for a cautious approach based on respect for fiscal responsibility over the summer when the Conservative Party was debating it’s future direction and it’s been a core tenet of my beliefs as long as I can remember.

"The government will seek to provide those reassurances to the markets in the coming days, in particular with a statement laying out the medium term financial strategy or how to balance the books over a reasonable amount of time, very soon.

"This will be important as we can all see the highly damaging effects of inflation and mortgage interest rises, impacting everyone of us, right now. I appreciate that a lot of people are very concerned right now, thinking about what might happen to their personal finances.

"Providing this confidence and clarity is the most important task in British politics right now.

"It was also sensible that the Chancellor abandoned his proposed reduction in tax for the wealthiest. Unfunded tax cuts are not my approach and certainly not prioritising those with the broadest shoulders in times when the going is tough for many.

"I will continue to argue for targeted support for the most vulernable, supply side reforms to grow the economy — like building more homes — coupled with fiscal responsibility to protect peoples savings and mortgages.