UK’s Finance Minister Fired

Kwasi Kwarteng, the UK’s finance minister, has been fired, according to unnamed sources cited by the BBC and Sky News on Friday as Prime Minister Liz Truss tries to save her troubled presidency.

His sack comes after less than six weeks in the role amid mounting political pressure and market chaos.

Kwarteng, who had just on Thursday declared he was “not going away” despite market turbulence over the government’s controversial economic policies, was described as “no longer chancellor” by the BBC.

In addition, Kwarteng acknowledged that he had been fired as UK finance minister by his friend, Prime Minister Liz Truss, following market turbulence brought on by the duo’s divisive economic strategy.

“You have asked me to stand aside as your Chancellor (of the Exchequer). I have accepted,” he wrote in a letter to Truss and published on his Twitter account.

“The economic environment has changed rapidly since we set out the Growth Plan on 23 September. In response, together with the Bank of England and excellent officials at the Treasury, we have responded to those events. I commend my officials for their dedication,” Kwarteng said in his resignation letter after being asked to step down.

 “It is important now as we move forward to emphasise your government’s commitment to fiscal discipline. The Medium-Term Fiscal Plan is crucial to this end, and I look forward to supporting you and my successor to achieve that from the backbenches.”

According to reports, on September 23, Prime Minister Liz Truss will declare that the government will back away from some problematic fiscal policy commitments made by Kwarteng in his “mini-budget.” These commitments include a sizable number of unfunded tax cuts.

The promise made by Kwarteng to undo his predecessor Rishi Sunak’s increase in corporation tax from 19% to 25%—which is expected to cost about £19 billion by 2026—as well as a 1.25% dividend tax cut—are among the initiatives that could be scrapped.

After receiving a significant amount of criticism from the public, the administration earlier this month abandoned its plan to eliminate the top rate of income tax, but this move did not calm the market.

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