Liz Truss told the country that it was clear that parts of her mini budget went further and faster than markets were expecting in a press conference in which she announced this afternoon that she was sacking her Chancellor and good friend Kwasi Kwarteng
Kearteng was sacked after just thirty eight days in the role and will be replaced by Jeremy Hunt who will now have the job of delivering the fiscal budget at the end of the month
We need to act now to reassure the markets of our fiscal discipline she said announcing that she had decided to keep the increase in corporation tax that was planned by the previous government, a move that will raise £18 billion per year and she added will “act as a down-payment on our full Medium-Term Fiscal Plan which will be accompanied by a forecast from the independent OBR.”
Truss insisted she would not resign after the sacking saying that she was “absolutely determined to see through what I have promised.”
Labour leader Sir Keir Starmer said Kwasi Kwarteng’s sacking does not “undo the damage” already inflicted by the Government.
He tweeted: “Changing the chancellor doesn’t undo the damage made in Downing Street.
“Liz Truss’ reckless approach has crashed the economy, causing mortgages to skyrocket, and has undermined Britain’s standing on the world stage.
“We need a change in Government. With my leadership, Labour will secure Britain’s economy and get us out of this mess.”
While Scotland’s First Minister Nicola Sturgeon said that
“The best thing Liz Truss could do for economic stability now is resign,”
“Her decisions have crashed the economy and heaped misery on people already struggling with a cost of living crisis.”
“The only decent thing for Tory MPs to do now is call time on her (Government) and allow an election.”
The FTSE 100 rose by as much as 3.2% after reports that Truss will scrap some of her tax cuts. UK bonds showed their biggest weekly rally for a decade.
