Chancellor Kwasi Kwarteng sacked
Chancellor Kwasi Kwarteng has reportedly been sacked by PM Liz Truss following the backlash from the mini-budget, according to sources speaking to Sky News.
Truss appears to have scapegoated the chancellor, and thrown him under the bus despite his mini-budget being agreed on and signed off by the PM.
Truss had defended the budget only a few days ago. She is expected to address the nation this afternoon and many will be looking to see if she blames the mess on the chancellor or acknowledges her role.
The budget caused chaos on the markets and faced massive backlash from Tory MPs. It’s been widely reported that despite Truss only having been in the job for five weeks, her MPs are plotting to oust her.
The start of her premiership has been the worst start for any prime minister – marred by U-turns, market chaos and backlash from Tories and opposition.
Chancellor praises Truss and pledges support from backbenchers
It’s now been confirmed that Kwasi Kwarteng has been sacked as Chancellor – in his statement he said the PM asked him to step aside, and he agreed. He offered the prime minister his full support from the backbenches.
The former Chancellor is a good friend and political ally of prime minister Liz Truss. The former chancellor left Downing Street via the front door – he is the second shortest-living chancellor in history. Many will argue the PM has thrown her former chancellor under the bus to save her own premiership.
The country is set to see another massive U-turn from the government today – and we’re expecting an announcement on who will be the next chancellor.
PM under pressure to rethink tax cuts
PM Liz Truss is under pressure from some senior Tory MPs to rethink tax cuts who want cuts to reassure the markets and stabilise the economy.
The warnings came ahead of a meeting of Tory backbenchers.
One loyal minister told the BBC: “We are completely in a dreadful place. There is no way out – maybe Liz Truss will find a way, but I cannot see it.”
Truss has repeatedly defended the proposed tax cuts outlined last month.
The chancellor’s mini-budget – which included £45bn of tax cuts funded by borrowing, sparked turmoil on financial markets and prompted the Bank of England to intervene to protect pension funds.