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| Kwasi Kwarteng: PM’s vision was right, says sacked chancellor | |
| (32 minutes later) | |
| Kwasi Kwarteng served as Chancellor for 38 days | Kwasi Kwarteng served as Chancellor for 38 days |
| Kwasi Kwarteng has been sacked as chancellor amid intense speculation Prime Minister Liz Truss is about to junk key parts of their economic plan. | |
| Mr Kwarteng met Ms Truss for crunch talks in Downing Street after cutting short a US trip. | |
| In a letter to the PM, Mr Kwarteng said her vision for economic growth was "right" and he still supported it. | |
| Ms Truss is expected to announce a U-turn on business tax cuts at a news conference in Downing Street at 14:30. | |
| Ms Truss's pledge to cut taxes was at the heart of the economic agenda that won her the Tory leadership at the start of September. | |
| "As I said many times in the past weeks, following the status quo was simply not an option," Mr Kwarteng wrote in his letter. | |
| "For too long this country has been dogged by low growth rates and high taxation - that must change if this country is to succeed." | |
| Live updates: Chancellor sacked after mini-budget backlash to return for crunch talks | |
| Pound rises on talk of mini-budget U-turn | Pound rises on talk of mini-budget U-turn |
| What was in the mini-budget and what has changed? | What was in the mini-budget and what has changed? |
| The dramatic dismissal of Mr Kwarteng makes him the second shortest-serving chancellor after just 38 days in the job. | |
| A long-time ally of Ms Truss, Mr Kwarteng was seen as her political soulmate when he was appointed to the role on 6 September. | |
| The prime minister is yet to announce Mr Kwarteng's successor but there is speculation Deputy Prime Minister Therese Coffey, former Chancellor Sajid Javid, or former Foreign Secretary Jeremy Hunt could take on the role. | |
| For days, Ms Truss has faced calls to drop parts or all of her economic plan to calm market turbulence and reassure her party. | |
| Some Tory MPs have discussed options to remove Ms Truss as prime minister, laying bare divisions within the party, which has been in power for 12 years. | |
| Ms Truss has already U-turned on her plan to scrap the top rate of income tax and some Tory MPs believe another change of course is inevitable. | Ms Truss has already U-turned on her plan to scrap the top rate of income tax and some Tory MPs believe another change of course is inevitable. |
| A further U-turn is likely to seen as a blow to Ms Truss's political authority only 39 days after she became prime minister. | A further U-turn is likely to seen as a blow to Ms Truss's political authority only 39 days after she became prime minister. |
| Labour's shadow chancellor Rachel Reeves said a "humiliating u-turn is necessary" after the government "plunged our economy into chaos and crisis with Truss' discredited trickle down approach". | Labour's shadow chancellor Rachel Reeves said a "humiliating u-turn is necessary" after the government "plunged our economy into chaos and crisis with Truss' discredited trickle down approach". |
| No mea culpa | |
| It's clear from Kwasi Kwarteng's letter that it was the prime minister's decision to get rid of him. | |
| This wasn't a mea culpa on his part; he was told to step down and did. | |
| Do not underestimate how significant this. Ms Truss and Mr Kwarteng were billed as the closest of political allies when she won power. | |
| His allies told me he saw his job as delivering her plans. They would, we were told, work in lockstep free from the drama seen in previous PM-chancellor relationships. | |
| But the turmoil in the markets - and then at Westminster - have ripped that relationship apart. | |
| Ms Truss has made the calculation that to move on from the mini budget she needed to get rid of her chancellor. But given how close the pair have been, that may be easier said than done. | |
| The mini-budget - announced by Mr Kwarteng on 23 September - included £45bn of tax cuts and an energy package worth an £60bn over six months, partly funded by borrowing. | The mini-budget - announced by Mr Kwarteng on 23 September - included £45bn of tax cuts and an energy package worth an £60bn over six months, partly funded by borrowing. |
| There were few details on how the government would fund the package, which left financial markets reeling, sent the pound plummeting, and forced the Bank of England to bail out pensions funds. | There were few details on how the government would fund the package, which left financial markets reeling, sent the pound plummeting, and forced the Bank of England to bail out pensions funds. |
| The chancellor was due to make a financial statement on 31 October, but it is unclear whether that will change. | The chancellor was due to make a financial statement on 31 October, but it is unclear whether that will change. |
| Meanwhile, financial markets rallied and the pound held firm as speculation mounts about a possible U-turn over the mini-budget. | Meanwhile, financial markets rallied and the pound held firm as speculation mounts about a possible U-turn over the mini-budget. |
| The Bank of England has been buying government bonds - known as gilts - to try to stabilise their price and prevent a sell-off that could put some pension funds at risk of collapse. | The Bank of England has been buying government bonds - known as gilts - to try to stabilise their price and prevent a sell-off that could put some pension funds at risk of collapse. |
| But that support is due to come to an end on Friday. | But that support is due to come to an end on Friday. |