British PM sacks Finance Minister, Kwarteng, over tax cuts

Britain’s Finance Minister, Kwasi Kwarteng, has been sacked, just weeks after he announced unfunded tax cuts that triggered financial turmoil.

British Prime Minister Liz Truss fired Kwarteng on Friday.

Truss is expected to scrap parts of the economic package in a bid to survive the market and political turmoil gripping the country.

Kwarteng confirmed the development. He said he had resigned at Truss’s request after rushing back to London overnight from IMF meetings in Washington.

Truss, in power for only 37 days, will hold a news conference later on Friday, Downing Street confirmed.

“You have asked me to stand aside as your Chancellor. I have accepted,” said his resignation letter to Truss, which Kwarteng published on Twitter.

Kwarteng is Britain’s shortest serving chancellor since 1970, and his successor will be the fourth finance minister in as many months in Britain, where millions are facing a cost of living crisis.

The British finance minister with the shortest tenure died.

Kwarteng had announced a new fiscal policy on September 23, delivering Truss’ vision for vast tax cuts and deregulation to try to shock the economy out of years of stagnant growth.

But the response from markets was so ferocious that the Bank of England had to intervene to prevent pension funds from being caught up in the chaos, as borrowing and mortgage costs surged.

The duo have since been under mounting pressure to reverse course, as polls showed support for their Conservative Party had collapsed, prompting colleagues to openly discuss whether they should be replaced.

The Star