The chairman of the Conservative Party has confirmed he attended a champagne bash with Kwasi Kwarteng hours after the controversial mini-budget - and did not rule out government plans being shared.
Jake Berry this morning said he was at a drinks reception for business leaders - including at least one hedge fund manager - at the home of a Tory donor on Friday, September 23.
But he dismissed this as the "normal drumbeat" of Tory party life - amid calls from the Lib Dems for an inquiry into the gathering.
Labour today demanded a list of attendees, with chair Anneliese Dodds telling her Conservative counterpart: "Despite the considerable market turmoil taking place at the time, it appears that both you, as Conservative Party Chairman, and the Chancellor, prioritised attending this party."
According to the Sunday Times, some of those present may have gone on to profit from the plummeting pound as markets went into turmoil.
Insiders also claimed that Mr Kwarteng outlined future Tory spending plans at the event, which saw business leaders gather at the London home of Andrew Law.
Mr Berry told Sky's Sophie Ridge on Sunday: "We often have drinks receptions for donors in the Conservative Party. These people should be lauded because as we don't have public funding for public funding of political parties..
"It's the normal drumbeat of Treasury events as we call them, that we have all the time."
Asked if hedge fund managers - who subsequently profited from the tumbling pound - were in attendance, Mr Berry said: "I'm sure there were."
He said: "There was one that I know of but in terms of the rest of the people there lots of people were people who had grown and started businesses..."
Mr Berry, asked how the event was acceptable, said: "I'm not sure if any of them did make money from the crash in the pound."
"Let's be absolutely clear this is part of the normal drumbeat of Treasury events within the Conservative party," he said.
"I was there, there was no confidential information that was discussed, it was a get-together with Britain's leading entrepreneurs who we should thank for creating growth in our economy..."
Quizzed about Mr Kwarteng's mood as he sipped champagne, Mr Berry said: "I'm not even sure the Chancellor was drinking champagne, I think he was drinking a soft drink.
"He was absolutely clear that he's set out a path for this country to create growth."
Insiders told The Sunday Times that Mr Kwarteng gave insights about future government spending plans - but Mr Berry said he did not overhear him doing so.
The party chairman said Mr Kwarteng addressed the gathering, and did not outline what his next moves would be during his speech.
However he stopped short of saying the Chancellor did not do so in private conversations.
Mr Berry said: "I certainly didn't hear him make those comments... I can't categorically rule it out because I didn't hear every conversation.
"We were all having our own conversations, but I can categorically rule out that in the address he gave he didn't give any insight into future plans."
Meanwhile PM Liz Truss said: “The Chancellor meets business people all the time. That’s his job. I do not manage Kwasi Kwarteng’s diary, believe me.”
She continued: “I get up every morning as Prime Minister thinking how can we make our country more successful, how can we reassure people, how can we get people through these difficult times.
“That’s what I’m focused on, that’s what the Chancellor is focused on, and that’s what the whole Cabinet is focused on.”
Following reports of the gathering, Ms Dodds wrote to Mr Berry: "There is huge public concern at your Government’s behaviour during this period. Your Government has created the current economic crisis, which is already having awful real-world impacts on working people. Indeed, many people are sickened by the image of champagne-quaffing Conservative donors encouraging the Chancellor to press ahead with further tax cuts for billionaires, at the same time as many members of the British public are unable to access a mortgage or are faced with a massive hike in interest rates.
"In this context, it is imperative that there is full transparency about your Government’s behaviour. This includes, of course, providing the OBR’s forecast immediately rather than holding this back, as demanded by Labour’s Shadow Chancellor Rachel Reeves. Full transparency is also required concerning this ‘party’.
"I therefore ask that you provide, immediately:
- A full list of attendees at this event including their names and the companies they work for or run
- Confirmation of whether or not attendees paid a fee to attend the party, and/or pledged funds towards the Conservative Party either during or after the party
- Given that the Chancellor appears to have disclosed sensitive and potentially market-moving information at the Party, details of whether any civil servants were present and minutes taken, and if not then why not."
Tory officials said Mr Kwarteng was at the gathering, which was arranged by the party’s campaign headquarters, for one hour to give a five-minute talk on his mini-budget.
A source close to the Chancellor told the Mirror: “Any suggestion attendees had access to privileged information is total nonsense.
"The Growth Plan published on Friday included a commitment to review our Tax Code to make it simpler, better for families and more pro-growth.
"The government’s ambitions on lowering the tax burden are hardly a state secret.”
Liberal Democrat Treasury spokesperson Sarah Olney said: "While struggling homeowners saw their mortgage bills spiral, it seems the chancellor was sipping champagne with hedge fund managers profiting from the falling pound.
"How out of touch can you get. We need an official inquiry into this now."
