British Finance Minister Kwasi Kwarteng has recently come under increasing pressure for his tax plans, some of which have now been cancelled. He will be succeeded by former Secretary of State Jeremy Hunt.
The British Treasury Secretary Quasi Quarteng has resigned. He did this following Prime Minister Liz Truss asked him to do so, Kwarteng said on Friday. “They asked me to resign as their finance minister. I accepted.” He will support Truss and his successor. Truss’ ideas are correct, he wrote on Twitter.
Former Secretary of State Jeremy Hunt will succeed him as Treasury Secretary.
Press conference on tax plans
The move comes just ahead of an expected reversal in the government’s planned tax plans. Just over five weeks following taking office, Truss is under massive pressure in her own party. The Prime Minister will appear before the press in the followingnoon. It is expected that large parts of their recently announced tax plans that have led to major economic turmoil, will take back.
The financial markets had reacted violently following the announcement of significant tax cuts without a counter-financing plan in September. The pound plummeted once morest the US dollar. the Bank of England had to intervene several times and buy government bonds in order to withstand the fall in their prices and to prevent the collapse of pension funds. Rising interest rates on home loans exacerbated the cost of living crisis for many homeowners.
Drastic course change in London
British Chancellor of the Exchequer Kwasi Kwarteng has called off a tax cut for the rich. But the problems for him and his boss Liz Truss may not be over yet. More on this.
The government then withdrew the planned abolition of the top tax rate and, following some hesitation, announced that it would also bring forward the presentation of the entire budget plan by a few weeks. But that only calmed the financial markets temporarily.
Fed chief Andrew Bailey recently announced an end to bond purchases for this Friday. According to some experts, he wanted to force the government to give in. Financial markets reacted positively to reports of a government reversal.
Liz Truss under pressure
It is questionable whether Truss will be able to calm the financial markets and consolidate their position with the dismissal of their Chancellor of the Exchequer and the expected reversal. British media have already speculated that her party might soon overthrow her.
Kwarteng’s resignation following less than six weeks means the shortest term in office since 1970. On Thursday he prematurely ended his participation in the fall conference of the International Monetary Fund (IMF) in Washington in order to return to London for crisis meetings. According to the Times, former Secretary of State Jeremy Hunt is to succeed him as Treasury Secretary. A government spokesman declined to comment on the personnel.
(APA/dpa/Archyde.com/Ed.)
