- British Prime Minister Liz Truss has called on Finance Minister Kwasi Kwarteng to resign. He accepted and resigned, said Kwarteng on Twitter.
- Truss came under increasing pressure from within her own ranks because of her controversial financial policy.
- The British media speculate that the prime minister is trying to save her own head with Kwarteng’s dismissal.
Several British media, such as the BBC and Sky News channels, as well as the Times, Sun and Guardian newspapers, reported shortly after Friday afternoon that Finance Minister Kwasi Kwarteng was about to be fired. Shortly thereafter, Kwarteng confirmed his resignation via Twitter.
Prime Minister Liz Truss plans to appear before the press later this afternoon. It is expected to roll back large parts of its recently announced tax plans that have led to major economic turmoil.
Minister Kwasi Kwarteng has been blamed for the recent turmoil in financial markets, which has been fueled by debt-financed tax cuts and heavy spending to keep energy prices down. Kwarteng returned to London early from the IMF conference in Washington.
The UK government’s plans for sweeping tax cuts, to be matched by tens of billions of pounds of new debt, had unleashed significant financial turmoil and forced the central bank to intervene.
Legend:
Not here to stay: Great Britain’s finance minister Kwasi Kwarteng has already had to take his hat off again.
Keystone/AP Photo/Kirsty Wigglesworth
A Bank of England bond-buying program worth £65 billion was due to expire on Friday. Because of the massive criticism, Truss and Kwarteng had withdrawn the planned abolition of the top tax rate.
Truss is politically ailing
On September 6, Liz Truss was appointed successor to Boris Johnson by Queen Elizabeth II, who died two days later. She is already considered to be badly hit politically. As the opinion research institute Ipsos determined, only 16 percent of Britons are satisfied with the new prime minister – this is the worst value that has ever been measured for a prime minister.
It is questionable whether Truss will be able to calm the financial markets and consolidate their position with the dismissal of their finance minister and the expected reversal. British media have already speculated that her party could soon overthrow her.