AUS
NZ
UK
CA
USA
IND
Highlights:
- Kwasi Kwarteng has been shown the exit door as the Chancellor of the Exchequer by Liz Truss after just 38 days into the role.
- Jeremy Hunt will replace Kwarteng in Truss' government.
Less than six weeks into the job, Kwasi Kwarteng has confirmed that prime minister Liz Truss has sacked him. In a letter addressed to Truss on Friday, which he also shared on the microblogging website Twitter, Kwarteng wrote that Truss had asked him to "step aside", and he has accepted it.
With this sacking, Kwarteng becomes the second shortest-serving Chancellor after Iain Macleod. Jeremy Hunt, the former foreign secretary and health secretary will replace Kwarteng.
In the tweet, Kwarteng argued that the tax-cutting plan was the right one, despite the reaction it received from the markets, stressing that following the status quo wasn't an option. He also backed Truss's economic vision, saying that serving her has been an honour.
Notably, Kwarteng was attending IMF meetings in the US but had to cut them short and return to the UK,
The dramatic move comes as Truss tries to restore her political authority and expand her support base across the Conservative Party. Following last month's mini-budget, she has been under pressure, inviting criticism from economists, international organisations, and even her MPs.
It also indicated a shift in the policy direction and an attempt to restore stability in the financial markets following weeks of chaos. The mini-budget, said to be the reason behind Kwarteng's downfall, had pushed the pound to a record low against the US dollar and sent the government's borrowing costs up. It prompted the Bank of England to launch an emergency intervention through its bond-buying program.
During the mini-budget, Truss is expected to announce a U-turn on Kwarteng's announcements.
