Top Line

Britain’s Chancellor of the Exchequer, Kwasi Quarteng, was sacked by Prime Minister Liz Truss on Friday morning after her government’s most recent mini-budget – which promised big tax cuts for the rich – had hit the public in recent weeks. And there was a huge response from both the markets. ,

Key Facts

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According to The BBC, Quarteng’s dismissal is the prelude to an announcement of the truce, which will include U-turns on several key aspects of Quarteng’s mini-budget.

Earlier on Friday, Quarteng met the truss at 10 Downing Street after a short trip to the US

In his resignation letter, which he share On Twitter, Quarteng said he was asked by the prime minister to “stand aside”.

Quarteng said the “economic environment” had changed rapidly since his mini-budget was announced, but reiterated his opposition to “high taxation”, which he says is “still needed to ensure economic growth”. should change”.

After news of Quarteng’s exit became public, the British pound fell 0.4% to $1.12.

Conservative MP Jeremy Hunt has been appointed As Quarteng’s replacement, he was made the country’s fourth chancellor in a difficult year for the party.

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The drama surrounding Quarteng's exit and Truss's policy U-turn has raised questions about his own future as prime minister, amid growing signs of rebellion within his party. According to The BBC, several senior members of the Conservative Party, plan to publicly urge Truss to resign. The report said that many of these senior MPs include former cabinet ministers, who believe that Quarteng was merely carrying out the policies of the truce and therefore should have stepped down.

main background

Truss, who was chosen by members of his party to replace Boris Johnson last month, has been forced to make several embarrassing policy U-turns in recent weeks. Truss had vowed to make sweeping tax cuts if he came to power, ignoring concerns that it would lead to further inflation. Late last month, Quarteng unveiled a mini-budget that included a tax cut that would benefit the wealthiest Britons, along with other tax cuts, while subsidizing rising energy costs for homes and businesses. Will try it too. If implemented, the policy would significantly increase government borrowing, something that rocked markets in late September and caused the pound to crash. After initial indications that he and his government would move forward with the budget, Truss was forced to step down and repeal planned tax cuts for high-income earners after facing stiff opposition from other members of his party.

Liz Truss appoints Jeremy Hunt as UK chancellor ahead of tax cut U-turn (financial Times)

Liz Truss appoints Jeremy Hunt as chancellor after Quarteng sacking (Guardian)