[UK] Prime minister confirms mini-budget U-turn after sacking chancellor

Following weeks of economic turmoil, the UK prime minister sacked Chancellor Kwasi Kwarteng today, then appointed Jeremy Hunt to replace him and announced another mini-budget U-turn, Sky News reports.

Liz Truss said, "I want to be honest, this is difficult" after sacking her chancellor and reversing key policies of her government's growth plan.

In a news conference shortly after Kwasi Kwarteng’s dismissal, Ms Truss said, "The way we deliver our mission has to change."

However, she said the "mission remains" to deliver a "low tax, high wage, high growth economy is what I was elected to my party to do".

Ms Truss said she was "incredibly sorry" to lose her good friend Mr Kwarteng, and confirmed that she had appointed Jeremy Hunt in his place.

She said Mr Hunt would deliver the medium-term fiscal plan at the end of this month.

Ms Truss also reportedly confirmed that the government would raise corporation tax next April to 25 per cent from 19 per cent, despite pledging not to do so in the mini-budget.

The Prime Minister reportedly spoke for just three and a half minutes, answering only four questions from journalists. She has received criticism for the fleeting appearance, with some Tory MPs saying the press conference only made things worse.

Ms Truss said Mr Hunt is "one of the most experienced and widely respected government ministers and parliamentarians, and he shares my convictions and ambitions for our country".

But she refused to take responsibility for any of the economic turmoil the mini-budget caused, saying, "It is clear that parts of our mini-budget went further and faster than markets were expecting, so the way we are delivering our mission now has to change."

Seeming determined to remain prime minister, Ms Truss said she had "acted decisively" and in the national interest.

"I am determined to see through what I've promised - deliver higher growth, a more prosperous United Kingdom," she said.

"I have to act in the national interest as prime minister."

When asked if she would apologise after former Tory chancellor Philip Hammond said she had trashed the party's winning reputation for economic competence, Ms Truss refused.

"Well, I am determined to deliver on what I set out when I campaigned to be party leader," she said.

"We need to have a high growth economy, but we have to recognise that we are facing very difficult issues as a country."

The prime minister sacked Mr Kwarteng this afternoon, shortly after he landed in London after leaving International Monetary Fund meetings in Washington DC early.

His sacking came just three weeks after unveiling £45bn of unfunded tax cuts in the mini-budget, which pushed the pound to a record low against the dollar, sent the cost of government borrowing and mortgage rates up and led to unprecedented intervention by the Bank of England.

The economic turmoil forced the government into two U-turns of key mini-budget policies: abolishing the 45p rate of income tax for higher earners and axing the planned rise in corporation tax from 19 per cent to 25 per cent next April.

Source: Sky News

(Quotes via original reporting)

Following weeks of economic turmoil, the UK prime minister sacked Chancellor Kwasi Kwarteng today, then appointed Jeremy Hunt to replace him and announced another mini-budget U-turn, Sky News reports.

Liz Truss said, "I want to be honest, this is difficult" after sacking her chancellor and reversing key policies of her government's growth plan.

In a news conference shortly after Kwasi Kwarteng’s dismissal, Ms Truss said, "The way we deliver our mission has to change."

However, she said the "mission remains" to deliver a "low tax, high wage, high growth economy is what I was elected to my party to do".

Ms Truss said she was "incredibly sorry" to lose her good friend Mr Kwarteng, and confirmed that she had appointed Jeremy Hunt in his place.

She said Mr Hunt would deliver the medium-term fiscal plan at the end of this month.

Ms Truss also reportedly confirmed that the government would raise corporation tax next April to 25 per cent from 19 per cent, despite pledging not to do so in the mini-budget.

The Prime Minister reportedly spoke for just three and a half minutes, answering only four questions from journalists. She has received criticism for the fleeting appearance, with some Tory MPs saying the press conference only made things worse.

Ms Truss said Mr Hunt is "one of the most experienced and widely respected government ministers and parliamentarians, and he shares my convictions and ambitions for our country".

But she refused to take responsibility for any of the economic turmoil the mini-budget caused, saying, "It is clear that parts of our mini-budget went further and faster than markets were expecting, so the way we are delivering our mission now has to change."

Seeming determined to remain prime minister, Ms Truss said she had "acted decisively" and in the national interest.

"I am determined to see through what I've promised - deliver higher growth, a more prosperous United Kingdom," she said.

"I have to act in the national interest as prime minister."

When asked if she would apologise after former Tory chancellor Philip Hammond said she had trashed the party's winning reputation for economic competence, Ms Truss refused.

"Well, I am determined to deliver on what I set out when I campaigned to be party leader," she said.

"We need to have a high growth economy, but we have to recognise that we are facing very difficult issues as a country."

The prime minister sacked Mr Kwarteng this afternoon, shortly after he landed in London after leaving International Monetary Fund meetings in Washington DC early.

His sacking came just three weeks after unveiling £45bn of unfunded tax cuts in the mini-budget, which pushed the pound to a record low against the dollar, sent the cost of government borrowing and mortgage rates up and led to unprecedented intervention by the Bank of England.

The economic turmoil forced the government into two U-turns of key mini-budget policies: abolishing the 45p rate of income tax for higher earners and axing the planned rise in corporation tax from 19 per cent to 25 per cent next April.

Source: Sky News

(Quotes via original reporting)