British Conservative Prime Minister Liz Truss fired Kwasi Kwarteng. Information provided BBC, was confirmed by himself through a tweet posted on his official account, where there is his official statement.

“He asked me to resign and I agreed,” the letter says, although he continues to insist that the British economy needs reforms to grow.

Knowing that the situation in the country has been “incredibly difficult” due to rising interest rates and energy prices, Kwarteng says he believes Truss’s “optimism, growth and change.”

Despite the resignation, Kwarteng promises to support Trouss from the parliamentary bench, stressing that they have been “colleagues and friends for many years.”

The Trass office announced a press conference around 2:00 pm without explaining why.

Kwarteng’s imminent resignation was taking shape as the now former minister cut short his visit to the United States and returned to London today.

Trass’s decision is linked to a series of financial measures announced by Kwarteng on Sept. 23, which included a package to freeze energy prices, as well as other tax cuts, notably the removal of the 45 percent income tax cap on the wealthiest taxpayers. .

Such proposals had a very negative impact, causing a devaluation of the pound sterling and an increase in interest rates on UK sovereign debt. Long-term volatility in the bond market led to an emergency intervention by the Bank of England to prevent the collapse of some pension funds with large investments in Treasury bonds.

Pressure is mounting on Truss – prime minister for just over a month – to sack Kwarteng, especially from her own party. Earlier this month, the head of government admitted in an interview with the BBC that Kwarteng did not present the measure to her before the presentation in Parliament, a sign that they do not agree with each other.

The treasury secretary’s departure comes at a time when criticism of the British prime minister is growing in her parliamentary majority, where some Conservative MPs have already begun calling for her replacement just a month after she took office.

Liz Truss has been Prime Minister since October 6, after winning the internal election within the Conservative Party, which replaced Boris Johnson at Downing Street. Truss, Johnson’s former Foreign Secretary, defeated Rishi Sunak, the former Treasury Secretary, in the same executive.

Seen as more necessary than desirable, his mandate was never agreed upon as it came from a heavily divided party. The convention of the Conservative Party in early October was marked by tension and dissent. Calls for unity, rather than in the interests of the Labor opposition, have little effect, and calls to replace Truss are getting louder.

“Mini-budget” has become a “maxi-problem”

The September 23 “Mini Budget” was primarily intended to finance an energy price freeze for households and businesses, which would cost £60bn (€69bn) and be supported by additional public debt.

However, in addition to the expected repeal of the increase in social security contributions that has been in place since April and the cancellation of the planned increase in corporate taxes, Kwarteng unexpectedly announced the abolition of the top 45% tax scale in 2023. on personal income, a reduction from 20% to 19% at the lowest level, and an immediate rebate on home purchase tax.

The cost of the biggest fiscal intervention in decades, estimated at around £45bn (€51bn), was met with suspicion by financial markets, leading to a devaluation of the pound, higher interest on British debt and uncertainty in real estate. sector.

The Bank of England was forced to intervene in the bond market, which helped stabilize the pound and the debt, but the British government’s plan was criticized by the IMF due to the risk of worsening inflation, and Standard and Poor’s reduced it from stable to stable. negative “rating” of the United Kingdom.

The chaos undermined the popularity of the Tories: a poll published in The Times newspaper gave the Labor Party a 33 percentage point lead.

The Financial Times reported this morning that Truss is on the verge of backing off some measures “in a desperate attempt to restore market confidence” and ensure she survives in the position she took 40 days ago.

The Times and the Daily Mail are making headlines about conspiracies within the Tories to overthrow Truss if she fails to control the economic and financial instability recorded in recent weeks.

Even before Kwarteng’s resignation, Conservative MP and chairman of the parliamentary finance committee, Mel Stride, who was one of the plan’s most outspoken critics, admitted that the return of the former US secretary “might very well mean we’re about to do a U-turn.”

“I believe this should happen,” he repeated, calling for an announcement as soon as possible “within the next 48 hours” ahead of the October 31 fiscal plan to calm markets.

One of the main possibilities that has been talked about is an increase in income tax from the current 19%, which Kwarteng has decided to freeze instead of increasing to 25% in 2023 as planned.

“We have reached a point where we need a strong signal to markets that confidence in fiscal policy has returned,” Stride said.

Order for only 38 days

Confirming his departure, Quareng became the second shortest-term minister in the British executive – surpassed only by Ian McLeod, who died of a heart attack 30 days after taking office in 1970.

Kwarteng, 47, the son of immigrants from Ghana who came to the United Kingdom in the 1960s, was introduced by Truss to the portfolio of the finance department, which had the difficult mission of leading the country out of a crisis caused by rising costs of living and rising energy prices.

Considered one of the key figures in the most ethnically diverse leadership, Kvarteng nonetheless followed a path very similar to his peers. Born in London to an economist and lawyer, Kwarteng received a scholarship to study at a private college at Eton. He then studied at Cambridge and Harvard in the USA.

An ultra-liberal, he worked as a financial analyst before being elected as a Conservative MP in 2010. Since 2021, under Boris Johnson, he has been secretary of business, industry and energy and, like his longtime friend Truss, has been driven by being a tax-cut liberal.