K
wasi Kwarteng has been sacked as Chancellor after just 38 days in the job.
The Chancellor flew back early from International Monetary Fund talks in Washington on Friday to be informed of his fate in a brief meeting with the Prime Minister.
In a letter, posted to Twitter, Mr Kwarteng said: “You have asked me to stand aside as your Chancellor. I have accepted”.
“When you asked me to serve as your Chancellor, I did so in full knowledge that the situation we faced was incredibly difficult.
“As I’ve said many times in the past weeks, following the status quo, was simply not an option.”
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Ms Truss will stage a press conference in Downing Street at 2.30pm on Friday in which she is expected to announce major changes to Mr Kwarteng’s £43 billion tax giveaway.
Mr Kwarteng’s departure may give Ms Truss some brief breathing space as she seeks to shore up her battered authority after weeks of turmoil following his “fiscal event” last month.
But it will also raise fresh questions about her chances of survival – because she was closely linked to the policies that caused the problems.
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IN FULL: Liz Truss’s letter to Kwasi Kwarteng
Below is the text of the letter from Liz Truss to her former Chancellor, Kwasi Kwarteng, who she sacked after just 38 days.
“As a long-standing friend and colleague, I am deeply sorry to lose you from the Government.
“We share the same vision for our country and the same firm conviction to go for growth. You have been Chancellor in extraordinarily challenging times in the face of severe global headwinds.
“The Energy Price Guarantee and the Energy Bill Relief scheme, which made up the largest part of the mini budget, will stand as one of the most significant fiscal interventions in modern times.
“Thanks to your intervention, families will be able to heat their homes this winter and thousands of jobs and livelihoods will be saved.
“You have cut taxes for working people by legislating this week to scrap the increase in National Insurance Contributions.
“You have set in train an ambitious set of supply side reforms that this Government will proudly take forward. These include new investment zones to unleash the potential of parts of our country that have been held back for too long and the removal of EU regulations to help British businesses succeed in the global economy.
“I deeply respect the decision you have taken today. You have put the national interest first.
“I know that you will continue to support the mission that we share to deliver a low tax, high wage, high growth economy that can transform the prosperity of our country for generations to come.
“Thank you for your service to this country and your huge friendship and support. I have no doubt you will continue to make a major contribution to public life in the years ahead.”
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Liz Truss tells Kwarteng: ‘I’m deeply sorry to lose you from Government’
Prime Minister Liz Truss has released a letter to Kwasi Kwarteng, describing him as a friend and saying she is “sorry” to see him leave Government.
In the letter, Ms Truss said: “As a long-standing friend and colleague, I am deeply sorry to lose you from the Government.
“We share the same vision for our country and the same firm conviction to go for growth. You have been Chancellor in extraordinarily challenging times in the face of severe global headwinds.”
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Chief Secretary to Treasury also loses job – reports
Another sacking has also reportedly occured in the Treasury, according to multiple reports.
Chris Philp is out as Chief Secretary to the Treasury and will be replaced by Ed Argar, according to the Times’s Steven Swinford.
Business Insider also reported Mr Philp has left his post.
This has not yet been confirmed by No10.
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Liz Truss to hold press conference at 2.30pm
Liz Truss will hold a press conference in just over an hour’s time.
The Prime Minister’s press conference will be held at 2.30pm in the Downing Street briefing room, No 10 has said.
The conference comes after Ms Truss sacked her Chancellor, Kwasi Kwarteng, making him among the shortest-serving Chancellors in modern British political history.
Mr Kwarteng served in the role for just 38 days.
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Labour: Firing Chancellor doesn’t ‘undo damage already done’
Responding to Liz Truss firing Kwasi Kwarteng, Labour’s Shadow Chancellor Rachel Reeves has said it doesn’t undo the damage already done.
“Changing the Chancellor doesn’t undo the damage that’s already been done,” she said.
“It was a crisis made in Downing Street. Liz Truss and the Conservatives crashed the economy, causing mortgages to skyrocket, and has undermined Britain’s standing on the world stage.”
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Pictured: Kwarteng leaving Downing Street after sacking
Kwasi Kwarteng has been pictured leaving Downing Street after his sacking.
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Video: Kwarteng waves as he leaves Downing Street after sacking
Kwasi Kwarteng has left Downing Street after effectively being sacked as Chancellor by Liz Truss.
He waved to reporters as he left via the front entrance of Number 11 before getting in a car.
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IN FULL: Kwarteng confirms he was sacked as Chancellor
Kwasi Kwarteng has confirmed he was asked to stand down as Chancellor.
In a letter addressed to Prime Minister Liz Truss, he said: “You have asked me to stand aside as your Chancellor. I have accepted
“When you asked me to serve as your Chancellor, I did so in full knowledge that the situation we faced was incredibly difficult, with rising global interest rates and energy prices. However, your vision of optimism, growth and change was right.
“As I have said many times in the past weeks, following the status quo was simply not an option. For too long this country has been dogged by low growth rates and high taxation-that must still change if this country is to succeed.
“The economic environment has changed rapidly since we set out the Growth Plan on 23 September.
“In response, together with the Bank of England and excellent officials at the Treasury we have responded to those events, and commend my officials for their dedication:
“It is important now as we move forward to emphasise your government’s commitment to fiscal discipline.
“The Medium-Term Fiscal Plan is crucial to this end, and I look forward to supporting you and my successor to achieve that from the backbenches. We have been colleagues and friends for many years. In that time, I have seen your dedication and determination. believe your vision is the right one. It has been an honour to serve as your first Chancellor.
“Your success is this country’s success and I wish you well.”
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Jeremy Hunt ‘being lined up as new Chancellor’ – reports
Jeremy Hunt, the former long-serving Health Secretary and prominent Rishi Sunak backer, could be the next Chancellor, according to reports.
Steven Swinford, the Times’s political editor, is reporting that Mr Hunt is being lined up to take over from Kwasi Kwarteng.
“Multiple sources are now telling me that Jeremy Hunt will be the new chancellor, although I’ve not had official confirmation yet,” he said.
“It’s being complicated by the fact he’s out of the country. Hunt was one of Sunak’s most prominent backers”.
TalkTV’s Tom Newton-Dunn had also previously reported from his sources that he believed Mr Hunt was the most likely to take over the post.
Downing Street still has not officially confirmed Kwasi Kwarteng has left his post as Chancellor, nor has it commented offically on any replacements.
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Group of Tory MPs ‘could call on Liz Truss to resign’ – BBC reporter
Pressure is growing on Liz Truss after the apparent sacking of her Chancellor, Kwasi Kwarteng.
According to the BBC Newsnight’s political editor Nicholas Watt, a group of senior Tories have been holding discussions and have decided that Mr Kwarteng’s sacking will lead them to call on Ms Truss to resign.
He said: “My source: “These are serious people. The PM will find it difficult to survive.”
It comes after a report in The Times newspaper on Friday, which suggested some MPs have been discussing a possible Rishi Sunak/Penny Mordaunt joint ticket to replace Ms Truss.
https://www.standard.co.uk/news/politics/kwasi-kwarteng-liz-truss-crisis-talks-corporation-tax-latest-news-politics-london-b1032621.html
