Kwasi Kwarteng out as UK chancellor after mini-budget backlash

BBC International News Oct - 14 - 2022 , 12:07 3 minutes read

Kwasi Kwarteng is no longer chancellor after meeting Prime Minister Liz Truss at Downing Street on Friday.

The Prime Minister Liz Truss will hold a news conference later, as speculation builds that the government could reverse more of the tax cuts announced in its mini-budget.

Kwarteng flew back to the UK for urgent talks with Truss Friday morning after cutting short a meeting with international finance ministers in Washington DC.

Earlier, a No.10 source told the BBC that Truss thought the chancellor was "doing an excellent job".

The PM faces growing calls from within her party to rethink her economic plans, with one Tory MP telling the BBC: "It's checkmate, we're screwed”.

Kwarteng confirms he was asked to 'stand aside'

Kwasi Kwarteng - who is out of his job as the UK's chancellor - has just confirmed that he was sacked by Prime Minister Liz Truss rather than choosing to leave.

He's tweeted a letter confirming the news, saying he was "asked to stand aside"

pic.twitter.com/4nvtyGWCoA
— Kwasi Kwarteng (@KwasiKwarteng) October 14, 2022

Kwarteng: 'We've been colleagues and friends for many years'

More details now from the letter published by Kwasi Kwarteng, who's been sacked as the chancellor.

He wishes Prime Minister Liz Truss well with her plans for the economy, noting that "we've been colleagues and friends for many years".

He promises his support for Truss from the backbenches.

Kwarteng also acknowledges market turbulence following his mini-budget on 23 September.

He writes that "the economic environment has changed rapidly" since he unveiled his plans, which comprised £45bn of tax cuts funded by government borrowing.

Kwarteng says he took on the job "in full knowledge that the situation we faced was incredibly difficult".

He appears to stand by the measures that were announced - saying "following the status quo" to address issues such as rising interest rates and energy prices "was simply not an option".

Pound falls sharply on Kwarteng news

The value of the pound has fallen sharply in the past half an hour after reports emerged that Kwasi Kwarteng is no longer chancellor.

Sterling is now back below $1.12, trading 1.3% lower than it was.

The pound rallied strongly yesterday after rumours of a planned U-turn on elements of Kwarteng’s so-called mini-budget.

He has become Britain's second shortest-serving chancellor, lasting just 38 days in the role.

The long-time ally of Prime Minister Liz Truss, seen as her political soulmate, was appointed to the role on 6 September.

Speaking before Mr Kwarteng became chancellor, one friend told the Times that he and Ms Truss were a bit like "Batman and Robin", adding: "They are both slight social misfits, amiable geeks, and have strong views which are in tune with each other."

He took over at Number 11 Downing Street at a critical time for the UK economy, with millions looking to him for help with soaring winter energy bills.

An Old Etonian who became the first black Conservative cabinet minister in 2021, he read classics and history at Trinity College, Cambridge, and has a PhD in economic history. He is also a past winner of notoriously tough BBC quiz show University Challenge.