Home Financial responsibility In a sign that she might change her stance on taxes, UK’s Truss fires her finance minister: NPR

In a sign that she might change her stance on taxes, UK’s Truss fires her finance minister: NPR

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British Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng visit a building site in Birmingham earlier this month. The two men met this morning on financial policy.

Stefan Rousseau/WPA Pool/Getty Images


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Stefan Rousseau/WPA Pool/Getty Images


British Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng visit a building site in Birmingham earlier this month. The two men met this morning on financial policy.

Stefan Rousseau/WPA Pool/Getty Images

LONDON – UK Finance Minister Kwasi Kwarteng has been forced out of office just hours after returning to London from meetings in Washington, DC

Downing Street said British Prime Minister Liz Truss would make a public statement on Friday afternoon, aimed at calming financial markets and members of her own Conservative party on her new government’s commitment to fiscal responsibility.

Truss has sought to turn the tide to some extent by reversing a planned tax cut for Britain’s highest earners, but has faced sustained pressure to reverse more of his planned measures, amid criticism from his own party lawmakers, political opponents, international economists and investors who continued to divest from British assets.

In a sign of widespread concern within his administration about the need to rethink the economic strategy of major tax cuts — one of the major elements of his leadership campaign this summer — Kwarteng left Washington, D.C., early. Thursday evening, where he had been meeting with international counterparts as part of a meeting of the International Monetary Fund.

He and Truss held urgent talks in Downing Street shortly after he returned to London.

“When you asked me to be your Chancellor, I did so knowing full well that the situation we faced was incredibly difficult, with global interest rates and energy prices rising.” , Kwarteng said in his resignation letter. “However, your view of optimism, growth and change was right.”

During the morning, as financial market participants grew confident that Truss would take action, confidence appeared to return in the form of purchases of UK government debt, which had the effect of lowering the cost of government loan.

Prior to her public address, Truss’s office and her supporters had repeatedly said that she would not change her broader approach to reviving economic growth, and that she and Kwarteng had continued to work together toward a common goal.