British Prime Minister Liz Truss on Friday dismissed Finance Minister Kwasi Kwarteng.
She named former Foreign Minister Jeremy Hunt as his replacement.
The prime minister replied: “I deeply respect the decision you have taken today. You have put the national interest first … I know that you will continue to support the mission that we share to deliver a low tax, high wage, high growth economy.”
Truss and Kwarteng have been scrambling to reassure markets and lawmakers after a September 23 tax-cutting “mini-budget” that plunged the UK into economic maelstrom.
Kwarteng had been in Washington for annual talks withthe International Monetary Fund. Before leaving the US capital, Kwarteng insisted he was safe in his role as Chancellor of the Exchequer, as the position of finance minister is known.
However, Truss had reportedly already been seeking a replacement to stave off threats to her own job. It is expected that a U-turn on that budget is to be announced later on Friday.
According to British media reports, Truss was considering reversing further aspects of her government’s controversial plans, which sparked market turmoil when they were announced.
In September, Kwarteng announced tax cuts — twinned with heavy borrowing — that spooked markets.That announcement sent interest that the government would have to pay on borrowing soaring.
Meanwhile, thepounds sterling slumped to a record low against the US dollar. (DW)
