The United Kingdom (UK) Prime Minster, Liz Truss, has fired Kwasi Kwarteng as Chancellor, three weeks after his mini-budget provoked chaos in the economy.
Sky News reports that Kwarteng’s downfall was set in motion by the mini-budget on 23 September, in which he announced £45bn in unfunded tax cuts.
The mini-budget pushed the pound to a record low against the dollar, sent the cost of government borrowing and mortgage rates up and led to an unprecedented intervention by the Bank of England.
Chris Philp, who was heavily involved in plans for the mini-budget, has also lost his job as Chief Secretary to the Treasury and has been moved to the Cabinet Office.
In Mr Kwarteng’s letter to Ms Truss accepting he had been sacked, he said: “You have asked me to stand aside as your chancellor. I have accepted.”
He said he accepted the job “in full knowledge that the situation we faced was incredibly difficult, with rising global interest rates and energy prices.”
Ms Truss and Mr Kwarteng, who have been close friends for years, insisted that the turbulence in the UK economy was part of a global problem exacerbated by the war in Ukraine and post-pandemic recovery.