Kwasi Kwarteng sacked as Chancellor as Truss attempts to regain initiative over the economy
Kwasi Kwarteng has been sacked as Chancellor, after returning to London early from a visit to the International Monetary Fund’s annual meeting in Washington.
The Prime Minister is set to hold a press conference later on Friday.
Mr Kwarteng’s dismissal and a widely expected U-turn on scrapping the corporation tax rise would be part of an effort to reassure markets after the mini-budget turmoil, according to the newspaper.
Prime Minister Liz Truss’s press conference will come amid intense speculation that she will dismantle key elements of their controversial mini-budget, with the scrapping of the planned rise in corporation tax widely expected to be ditched.
Shadow Secretary of State for Climate Change Ed Miliband meanwhile said the Conservative Party should be “hanging its head in shame” over the ructions in the UK economy.
“This is a Government in meltdown and an economic policy in tatters and frankly I think the Conservative Party should be hanging their head in shame at what it’s putting the country through. This is about people’s livelihoods, people’s homes, people’s mortgages,” he told Sky News.
He added: “You have a Government that embarked on a strategy of saying: ‘Lets have massive tax cuts for the richest in society, for big corporations, so-called trickle-down economics’, which isn’t going to work, and also they’re trashing the economic institutions of this country, like the Office for Budget Responsibility.
“That is why the markets have reacted as they have, that’s why there’s been such a loss of confidence in the Government and the Government’s economic policy and that’s why the budget has got to be ripped up.”
Mr Miliband also said: “I think people will be furious that the Government are taking people for fools.
“It is not a global phenomenon, there’s no other finance minister who is rushing back on a aeroplane early from the IMF meetings, there’s no other countries where its central bank have had to have an emergency buying spree, there’s no other country where it’s economic policy is falling apart at the seams.
“This is a collective meltdown on the part of the government and the people of the British public deserve so much better than what this government re putting this country through.”
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