Britain’s new Prime Minister Liz Truss, has sacked her finance minister Kwasi Kwarteng and reversed another of her proposed tax cuts on Friday.
He was fired over the controversy of his much-criticized economic package.
This comes few weeks after the pair took office and unveiled a tax cut-focused economic plan that sent the pound’s value plummeting, interest rates soaring, and financial markets convulsing.
Kwarteng is now the second-shortest serving British Chancellor of the Exchequer in modern history.
Downing Street confirmed that Truss, in power for only 37 days, would hold a press conference later on Friday after Kwarteng was forced to rush back to London from IMF meetings in Washington to address the chaos.”
Kwarteng confirmed the sack via a tweet on Friday where he displayed a letter to the Prime Minister accepting her instruction to have him “stand aside”
“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.
“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. I 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.”
Kwarteng’s challenges arose after he put out a UK Economic policy that it will cut the top tax rate from 45% to 40% from April 23rd of next year sending the UK Pound spiraling down as investors scampered.
The move was criticized because the government did not show how it would fund the tax cuts suggesting that the new prime minister Liz Truss and her Chancellor Kwasi Kwarteng seemed bereft of reality.
