The United Kingdom’s finance minister Kwasi Kwarteng was ousted Friday by Prime Minister Liz Truss after less than six weeks on the job.
Why it matters: Kwarteng, the chancellor of the Exchequer, and Truss have spent an enormous amount of political capital attempting to implement a tax cut plan that roiled markets.
- They had hoped the cuts would stimulate growth but instead sparked criticism from their own party and severely weakened the pound, which at one point fell to a record low against the dollar.
Driving the news: Earlier this month, the government abandoned plans to cut taxes for the highest earners.
- Downing Street said Truss would hold a press conference later on Friday, where she’s expected to scrap more of the economic package.
- Kwarteng on Thursday insisted he was sticking with the rest of the tax plan and said: “I’m not going anywhere.”
- He then cut short a trip to Washington, D.C., to return to London and meet with Truss.
What they’re saying: “When you asked me to serve as your Chancellor, I did so in full knowledge that the situation we faced was incredibly difficult, with rising global interest rates and energy prices,” Kwarteng wrote to Truss.
- He added: “We have been colleagues and friends for many years. In that time, I have seen your dedication and determination. I believe your vision is the right one.”
Editor’s note: This is a developing story. Please check back for updates.
