Jeremy Hunt will replace Kwasi Kwarteng as chancellor, it has been confirmed.
Earlier this morning, Kwarteng cut short a trip to the US following reports that Prime Minister Liz Truss is set to U-turn on parts of his ‘mini-budget’. It was later announced that Kwarteng had been sacked as chancellor.
It’s been only three weeks since Kwarteng announced this mini-budget. Amongst other things, his plan included a raft of tax cuts, extra borrowing and the removal of the cap on banker’s bonuses. The markets responded turbulently, with the pound hitting its lowest level in thirty years.
This had previously prompted concern amongst Tory MPs. Following the announcement of the mini-budget, Labour enjoyed a significant lead in the polls.
Having served as chancellor for only 38 days, his tenure becomes the second shortest in British history.
The Prime Minister will now set out to steady the markets. To do this, she will hold a conference this afternoon where it is expected she will U-turn on some aspects of the mini-budget.
The Prime Minister will hope that this, coupled with Kwasi Kwarteng’s departure, may reassure sceptical Tory MPs that she should stay in Downing Street. Essentially, it appears that the Prime Minister is letting Kwarteng take the fall in a bid to protect her job.
Hunt had entered the Tory leadership over the summer, his second after his previous loss to Boris Johnson in 2019, but failed to gather enough support and eventually went on to support the Sunak campaign.
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