Truss fires Kwarteng: he is the British finance minister of less time, since the distant 1970
Il Minister of Finance British, Kwasi Kwarteng was fired by the premier Liz Truss just over a month after the green light of the new government, born from the ashes of the scandals of the former number one of Downing Street Boris Johnson. This is the second shortest term after the Conservative John MacLeod, died of heart attack 30 days after taking office in 1970. In addition to Quarterlyhave covered this role: Nadhim Zahawi, Rishi Sunak e Sajid Javid.
The next Minister of Finance it will be the seventh in twelve years. In a letter addressed to Prime Minister Liz Truss and published on her Twitter account, Kwarteng said it was “an honor” serve as chancellor, claiming the need for a drastic change of direction in the economy. A formally autonomous choice, but clearly imposed by Truss.
“Following the status quo is no longer an option,” reiterated the former chancellor, arguing that Britain can no longer support a high level of taxation accompanied by low growth. “This has to change for the country to be successful,” she added, admitting, however, that the “economic environment” has changed “rapidly” since the announcement of her growth plan on 23 September. “Your success is the success of this country and I wish you well“, concluded Kwarteng, turning to Truss in closing.
“I am very sorry to lose you in the government,” Truss replied to the finance minister. “Thank you for your service to this country and for your great friendship and support “, added the premier who also praised Kwarteng for his work that will allow” families to turn on the heaters this winter “and which has” saved thousands of jobs “.
READ ALSO: Uk, Liz Truss backs off: no tax cuts for the richest
United Kingdom, after the resignation the storm over the Truss fiscal maneuver
With the resignation of the first holder of the Finance and Treasury of African origins in British history, the “first head” of Truss’s government fell. Behind the farewell there would in fact be the financial chaos broke out in recent weeks regarding the launch of the “mini budget maneuver“By the premier. The hyper-liberalist proposal included cutting the highest rate of income tax and a scissoring of tax billionaires on the rich in deficit despite inflation, the global crisis and the rise in rates.
UK, Downing Street appoints Hunt as new chancellor
Meanwhile, Downing Street just confirmed that Jeremy Hunt, former health minister, will be the UK’s new Chancellor of the Exchequer. Hunt, who had previously been in the ‘race’ for Tory leadership, is Britain’s fourth economy minister this year. As per practice, the re Carlo III has already given the placet: “The king is pleased to approve the appointment” of Jeremy Shet, he did know on Twitter the Royal House.
UK, press reaction: “Truss has 17 days to save”
Meanwhile, the London print thus strikes down the British Prime Minister: “Truss has 17 days to save his job”: this is the merciless comment today in the Daily Mail that summarizes the storm that is engulfing the British Prime Minister, Liz Trussafter the sensational reverse on the tax cut for the richest, called one real “humiliation” by the British press and that it had sent the markets into turmoil.
Some Tory MPs, writes the Financial Times, are considering the possibility of replacing the first minister with a ticket composed by Rishi Sunak, defeated by Truss in the Conservative party runoff in early September, and by the leader of the Municipalities and former Minister of Commerce, Penny Mordaunt. But a minister, highlights the City newspaper, branded the change in leadership of the conservative party and consequently of the government as “total rubbish”. “If Truss left, it would be a big mess and I don’t see how it could happen quickly or smoothly“, he added.
The Times also highlights the strong friction between the Tories and the difficulties of the ‘new Thatcher’, the fourth Conservative leader in six years who is under pressure from prominent members of her party to the point that her days in Downing Street would be numbered. According to the Times, an agreement between Sunak and Mordaunt would meet with the support of a large majority of lawmakers.
Twenty former ministers and party leaders would be ready to demand a step back from Truss. “Talks are intensifyingA former minister said on condition of anonymity, while the latest YouGov poll for the Times indicates that nearly half of those who voted conservative in the last election want the party’s MPs to oust Truss.
62% say i party members they made a wrong decision in voting for her, while 43% want the party to elect a new prime minister. Furthermore, if we voted today, the Tories would be 28 points behind Labor. Meanwhile, British Foreign Minister James Cleverly yesterday warned of the “disastrous” consequences of Truss’s replacement, calling the hypothesis a “bad idea, not only politically, but also economically”.
The economy is at this stage the Achilles heel of the new government. The maxi-tax cuts announced by the Truss government caused major turbulence in the markets, plunging the pound sterling and forcing the Bank of England to announce the tightening of the bond purchase plan as the market for UK government bonds represents a risk for the financial stability of the country. All eyes are now on, after Kwarteng’s resignation, on the government’s medium-term fiscal plan, which must be presented by 31 October.
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