Kwasi Kwarteng insists he is 'not going anywhere' as pressure mounts for 'inevitable' U-turn

Kwasi Kwarteng has insisted he is “not going anywhere” amid increasing pressure for the Government to scrap the measures announced in its mini-budget.

The Chancellor insisted his focus was on “growth” during an interview in America, but failed to answer if more U-turns were coming and they’d make him resign.

While Mr Kwarteng was on the other side of the world, the Treasury was understood to have been charged with going back through the fiscal plans to re-evaluate them.

The refusal to rule out a u-turn came as Tory MPs actively moved against the Prime Minister, with several telling The Scotsman they had submitted letters of no-confidence in Liz Truss.

The chancellor has insisted he is "not going anywhere" amid the economic turmoil in the UK and said he remains "totally focused" on delivering the government's growth plan.

It followed a disastrous meeting with backbenchers on Wednesday night described by MPs as a “funeral” and “the end”.

With a growing backlash, Mr Kwarteng was asked if he and the Prime Minister would still be in office in a month.

He said: “Absolutely 100 per cent. I am not going anywhere.”

Asked if he would have to quit if there were further U-turns on the mini-budget, Chancellor Kwasi Kwarteng said: “I am totally focused on the growth agenda.

“I am totally focused on making sure that people are helped with their energy bills, that the energy price guarantee is understood, that the scale of our intervention is understood and that we can actually deliver this country a path, get us on a trajectory, to growing the economy so everyone benefits.”The Chancellor was also challenged on discussions over scrapping measures happening while he was away, read by some in Westminster as pinning the blame on him.

Mr Kwarteng explained: “I speak to No 10, I speak to the Prime Minister all the time.

“We are totally focused on delivering the growth plan.

“What we were facing was a tax high of 70 years and no growth.”

Meanwhile in Westminster, Downing Street refused to deny discussions of reversing aspects of the mini-budget were taking place.

A Downing Street spokeswoman said: “I wouldn’t comment on meetings the Prime Minister has.

“More broadly… the PM is focused on the delivery of the growth plan.

“As you would expect, she meets regularly on this and ahead of the medium-term fiscal plan.

“But I would not get into those reports.”

Asked whether an imminent change is possible, a No 10 spokesperson told reporters: “Again, I just have to repeat that our position hasn’t changed and the Chancellor was very clear that he and the PM are working to deliver the growth plan.

“Work is ongoing between the Chancellor and the Prime Minister, as you’d expect, ahead of the medium-term fiscal plan.

“The focus of both the Chancellor and the PM are on delivering the growth plan and the position has not changed.

“As you’d expect, we’re working closely with the Treasury ahead of the medium-term fiscal planning in the usual way that you would expect.”

But the managing director of the International Monetary Fund (IMF) hinted that Mr Kwarteng might need to change course.

Speaking at a press conference in Washington, Kristalina Georgieva said: “Our message to everybody, not just the UK, is that at this time, fiscal policy should not undermine monetary policy.”

She added that “it is correct to be led by the evidence, so if the evidence is that there has to be a recalibration, it’s right for governments to do so”.

Former chancellor George Osborne suggested Mr Kwarteng should not delay until his October 31 statement before making the “inevitable” U-turn on his plans.

“Given the pain being caused to the real economy by the financial turbulence, it’s not clear why it is in anyone’s interests to wait 18 more days,” he said.

Rumours are now rife of replacing Ms Truss with a joint ticket involving her former leadership rivals Rishi Sunak and Penny Mordaunt.

But Foreign Secretary James Cleverly told BBC Radio 4’s Today programme: “I think changing the leadership would be a disastrously bad idea politically and also economically.”

Numerous MPs have submitted letters of no-confidence, and even those that haven’t believe this is the end for the Prime Minister.

One said: “The mood is genuinely horrendous. Much worse than conference. It's over”.

Another added: “Mood is worst I've ever known it, colleagues are submitting letters.

"She's just embarrassingly bad, and even looks like she knows she's s**t".

SNP Westminster leader Ian Blackford MP said the Tories "will never be forgiven" if they fail to change direction.

He said: "Liz Truss has been a disaster as Prime Minister. In just a few short weeks, she's trashed the UK economy and put people's homes, pensions and incomes under threat - demonstrating all too clearly why Scotland needs independence to escape the chaos of Westminster control.

"The Prime Minister has run out of time and credibility. Tory MPs must put the economy first and force her to change direction now - or show her the door. Another U-turn might be humiliating for Ms Truss but the Tories will never be forgiven if they fail to act.

"It's essential the U-turn comes immediately. With every day they delay, the Tories are inflicting more damage to household incomes as mortgages rise, pensions fall, and the UK economy flounders. Dithering until 31st October will only make the damage worse."

Meanwhile, the Liberal Democrats called for Mr Kwarteng to resign.

Lib Dem leader Ed Davey said: “This U-turn would come too late for many struggling families facing mortgage misery.

“The only way to restore credibility is for Kwasi Kwarteng to resign or be sacked. This Chancellor has done enough damage and needs to go.

“His botched budget then needs to be scrapped altogether and replaced with a fair and responsible plan, including emergency support for mortgage borrowers bearing the brunt of this Conservative chaos.

“Too many homeowners are being forced into making heartbreaking decisions because Truss and Kwarteng decided to hand out unfunded tax cuts for the super wealthy.

“They will never forgive the Conservatives for this disastrous experiment, playing fairytale economics with people’s lives.”