Kwasi Kwarteng sacked as Chancellor after just 38 days in job

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Tea

The chancellor was forcibly fired on Friday amid protests over his mini-budget.

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Quasi Quarteng flew home early from Washington for crisis talks with Liz Truss to ease market turmoil with another outrageous U-turn on his financial policies on the horizon.

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In his resignation letter, Mr. Quarteng said: “You have asked me to stand apart as your Chancellor.

“I accepted. When you asked me to serve as your chancellor, I did so with full knowledge that the situation we faced was incredibly difficult.

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“As I have said several times over the past weeks, adhering to the status quo, simply was not an option.”

Having served only 38 days in the job, Mr Quarteng is the UK’s second-shortest-serving chancellor on record and will be the fourth person to take his place in as many months.

Shortest-serving Ian McLeod died in office in 1970, 30 days after taking the job.

Ms Truss is believed to want to install a replacement at the Treasury before facing questions from the press.

As she raced to prevent economic chaos from threatening the government, speculation mounted that a £17bn decision would be reversed not to go ahead with a previously planned increase in corporation tax in the mini-budget.

But amid the frenzied atmosphere at Westminster, uncertainty over the prime minister’s actions gave way to the incredible speed at which events were unfolding and into the afternoon.

The value of the pound fell sharply within 30 minutes after reports surfaced that Mr Quarteng was no longer chancellor.

Sterling is now below $1.12, down 1.3 percent from earlier.

The pound rose strongly on Thursday following rumors of a planned U-turn on key elements of Quarteng’s mini-budget.

In another blow to his reputation, an Ipsos poll for the Evening Standard showed he had fallen to a record low of nearly 50 years for the chancellor after his mini-budget catastrophe.

It found that 65 per cent of adults in the UK are dissatisfied with him, and only 12 per cent are satisfied, giving him a net rating of -53 over a month in the job. No other chancellor’s rating had deteriorated until Dennis Healy was at the helm of the Treasury in 1976, the year the Labor government had to beg the International Monetary Fund for a bailout.

Mr Quarteng’s net satisfaction figure is at the same level as Norman Lamont’s -52 in March 1993, nearly six months after Black Wednesday when the government was forced to withdraw sterling from the exchange rate mechanism, and Ken Clarke’s -53 in December 1994, when quarterly unemployment averaged 2.5 million.

Earlier, Trade Minister Greg Hands insisted the prime minister still had “full confidence” in Mr. Quarteng. Just 39 days after entering No. 10, some Conservative MPs were discussing who could replace Ms Truss if the crisis didn’t happen.

In a sign of the frenzied atmosphere at Westminster, former cabinet minister Nadine Dorries claimed that Rishi Sunak’s male “Grady” supporters, who believed Ms Truss had to go, “conspired not to remove a PM but to overturn democracy.” “Involved in.

Amid the infighting, Tory MP Mel Stride, chair of the Commons Treasury Committee, urged fellow backbenchers to “give space” to Truss and the chancellor until at least 31 October to see when a new financial statement is due. whether their plans will work. ,

He also warned that the markets have already paid the price of a “significant pullback” on the mini-budget and that they “might have an adverse reaction” if this does not happen now.

“So my advice to the Chancellor would be firmly, do it now, make sure it’s something important, not just nibbling on the edges, but something that’s firm, bold and reassuring, but do it as soon as possible,” he said. Told BBC Breakfast.

However, Mr Hands insisted there were “no plans to change anything,” despite widespread expectation that a U-turn was imminent.

Shadow Cabinet Minister Ed Miliband told Sky News: “This is a government in recession and economic policy has collapsed.

“The Conservative Party should bow its head in shame as to what condition it is putting the country in. It is about people’s livelihood, people’s homes, people’s mortgages.”

Mr Quarteng was in Washington for a financial summit.

Before leaving, he initially insisted he stood by his economic development plan and would determine how to get public finances back on track as planned in a statement on October 31.

However, some lawmakers believed he could wait that long, and later in an interview with The Daily Telegraph he said only “let’s see” when asked if he could make his promises on the corporation tax. can leave.

Ministers tried to play down the impact of the mini-budget on 23 September, which caused the pound to fall, before recovering from a pension fund crisis that forced the Bank of England to intervene, reducing the cost of government borrowing. Extended and triggered. Mortgage value.

But even after taking into account the £60 billion energy bill support package, more than half of adults believe it will put them out of pocket overall, with a third saying it will make little difference and just 10 percent. Hoping to get better. , The survey also showed:

Labor 47 per cent, up seven points last month, Conservatives 26 per cent, down four points and Lib Dems down three points at 10.

Labor’s 21-point lead is the highest in an Ipsos poll since October 2002, though its methodology has changed over the years.

One in five Conservative voters in 2019 now say they have switched to Labor.

67 percent of adults are dissatisfied with Ms Truss, up 38 points from last month, 16 percent satisfied, down 11 points, and 17 percent say they “don’t know”, down 27 points.

Thirty-eight percent of voters are satisfied with Sir Keir Starmer, up seven points last month, 39 percent dissatisfied, down six points.

Gideon Skinner, head of political research for Ipsos UK, said: “Even in our long-term trends over the decades there are some prime ministers (and no chancellor) with bad scores, and none so bad so quickly Is.”

Credit: www.standard.co.uk /

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