Kwasi Kwarteng ‘sacked as chancellor’ over mini-budget U-turn

Kwasi Kwarteng has allegedly been sacked as chancellor following his mini-budget U-turn, new reports are claiming this afternoon.

He was appointed to the role by Prime Minister Liz Truss just thirty-eight days ago.

In a public letter to the prime minister, Kwarteng wrote: “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 I commend my officials for their dedication.”

He continued: “It is important now as we move forward to emphasise your government’s commitment to fiscal discipline. 

“We have been colleagues and friends for many years. In that time, I have seen your dedication and determination. I believe your vision is the right one. It has been an honour to serve as your first Chancellor.”

According to Sky News, Kwarteng’s downfall began when he announced his mini-budget on September 23rd, which included the controversial plan to axe the 45p rate of income tax for Britain’s wealthiest earners.

This caused the pound to spiral to a historically low value, consequently sending government borrowing and mortgage rates sky rocketing.

The economical chaos even led the Bank of England to launch an emergency intervention to restore market functioning. 

Just weeks after the announcement and following a wave of backlash, Kwarteng announced the government would no longer be proceeding with the abolition of the tax rate, which is paid for by people earning over £150,000 a year. 

Kwarteng said it had become clear that the abolition of the tax rate had become ‘a distraction from our overriding mission to tackle the challenges facing our country’.