Liz Truss has announced that Kwasi Kwarteng has been fired from his position as chancellor as the prime minister attempts to regain political control ahead of a U-turn on some aspects of her disastrous mini-budget later on Friday.
Kwarteng began his letter to Truss on Twitter by writing: “You have asked me to step down as chancellor. I’ve consented.
The prime minister wanted Kwarteng to “carry the can” regarding her climbdown as she attempted to calm the markets and the nerves of uneasy Tory MPs, according to Downing Street sources earlier.
After Kwarteng hurriedly returned from an International Monetary Fund (IMF) meeting in Washington, DC, Truss met with him in Downing Street for crisis talks. Kwarteng had previously been her closest political ally and a co-author of her growth plan.
Later on Friday, Truss was scheduled to hold a press conference at Downing Street.
Following the status quo was simply not an option, according to Kwarteng, who argues in the letter that their plan to swiftly cut taxes was the right one despite the volatile market response to his mini-budget of September 23.
“Since we announced the growth plan on September 23, the economic situation has changed significantly,” he continued. We have responded to those events in conjunction with the Bank of England and outstanding Treasury officials.
“Since we announced the growth plan on September 23, the economic situation has changed significantly,” he continued. We have responded to those events in conjunction with the Bank of England and excellent Treasury officials, and I commend my officials for their commitment.
Kwarteng supported Truss’s economic philosophy and said it had been “an honour” to work for her, noting that he and Truss had been “colleagues and friends for many years.”
As we move forward, it is crucial to emphasize your government’s dedication to fiscal restraint, he continued. To that end, the medium-term fiscal plan is essential, and I look forward to working with you and my successor to make it a reality from the opposition benches.
According to insiders in Whitehall, the two had different opinions about how far the government should go in rolling back important aspects of its plan to calm the markets and reassure worried Conservative MPs.
They claimed that Kwarteng had pushed for a full retreat on the corporation tax policy, raising it from the proposed 19% rate to 25%, while the prime minister had preferred to go for a much smaller increase.
Despite receiving the majority of the blame for the policies, a Treasury insider claimed that Kwarteng had always been “more prepared to U-turn” than Truss on corporation tax and the 45p rate.
Insiders from Downing Street, however, claimed that Truss was likely to completely abandon the proposal.
The prime minister decided that firing the chancellor was necessary for her political survival because her own position appears to be in such danger and Tory MPs are actively plotting her removal amid chaos.
Though one furious Tory MP told Sky News: “The idea that the prime minister can just scapegoat her chancellor and move on is deluded, the move is unlikely to placate them. This is what she sees. She approved of every element and stood by it.
Also read: Kwasi Kwarteng named Britain’s new Finance Minister
Treasury insiders predicted that Kwarteng might be replaced by either Simon Clarke, the levelling up secretary, or Nadhim Zahawi, the Cabinet Office minister who served as chancellor for 63 days this summer.
Truss is facing significant pressure from Conservative MPs and the markets, which has caused No. 10 to redraw the mini-budget and open the door for a significant U-turn on her campaign promise to cut corporation taxes.
Government sources claim that a retreat on the plan to drop the increase in corporation tax is now “on the table” after weeks of defending the proposal for sizable unfunded tax cuts.
Kwarteng claimed earlier this week that he was not in danger of losing his job as chancellor and that he was “absolutely 100%” certain he would remain in that position come next month.
Follow Clicks ‘n Likes On Facebook for more updates
