UK, Liz Truss in crisis: Finance Minister Kwasi Kwarteng resigns

UK, Liz Truss in crisis: Finance Minister Kwasi Kwarteng resigns

Kwasi Kwarteng pays the 45 billion pound mini-finance, rejected by the markets. The successor is Jeremy Hunt.

The first head falls in London after the financial chaos of recent weeks: the Chancellor of the Exchequer (the British Minister of Economy, ed) Kwasi Kwarteng resigned after 37 days from the birth of the new government led by Liz Truss, becoming the de facto Minister of Finance in office for the shortest time in the British government since 1970.

In his place comes Jeremy Hunt, former foreign minister and secretary of health, very close to Rishi Sunak who had contended with Truss for the leadership of the conservatives.

Kwarteng paid the mini-finance he had created, with which the British government had announced tax cuts for 45 billion pounds: a maneuver immediately rejected by the markets, in the absence of adequate coverage.

The British premier announced at a press conference in Downing Street that she wants to back down, once again as part of the controversial mini-maneuver, on the abolition of the increase on the corporation tax from 19 to 25% starting next year. which therefore will be there as established by the previous government.

“It is clear that parts of our budget have gone beyond and faster than the market’s expectations so we must act now to reassure the markets about our commitment to fiscal discipline,” Liz Truss told a Downing Street press conference. confirmed the forced resignation of Kwasi Kwarteng and the appointment of Jeremy Hunt as the new finance minister.

“Dear Kwasi, I am deeply sorry for having lost you from the government”, reads Kwarteng’s letter in response in which the latter announced that he is leaving the post of Minister of Finance. Truss says that Kwarteng has assumed his role in “times extraordinarily difficult “and” in the face of strong global headwinds. “Truss is confident that Kwarteng will continue to support the common mission to lower taxes, raise wages and grow the economy. She concludes:” Thank you for your service to this country and for your great friendship and support ”.