The former chancellor, who was fired when the markets plunged, claims he warned the then-prime minister, “You have two months if you continue in this manner.”
Kwasi Kwarteng claims he told Liz Truss to “slow down” after the announcement of the market-crashing mini-budget.
The ex-chancellor, who was dismissed by the then-prime minister, told TalkTV’s First Edition program: “She answered, ‘Well, I’ve only got two years,’ and I replied, ‘You’ll have two months if you continue in this manner.'”
Mr. Kwarteng acknowledged that he was “responsible” for the budget plan and that he would “not wash his hands” of it.
However, he refused to apologize for the incident and instead stated, “In retrospect, I believe we might have taken a lot more measured approach.”
The Conservative member of parliament also corroborated rumors that he learned of his dismissal via Twitter and stated that when he arrived at Number 10, Ms. Truss was “distressed and upset.”
She was assertive.
When asked by host Tom Newton Dunn what went wrong, the politician responded, “I believe we attempted to do too much too quickly.” Too much, too quickly. I believe the strategic objective was correct.
“However, I believe we should have taken a somewhat more cautious approach, given that we could have, given that we’re having an autumn statement. Of course, it will be included in the April budget.
Therefore, I believe that was her vision. Her motivation was 100% correct, but I believe we needed a better tactical approach to accomplish what she desired.”
Mr. Kwarteng proceeded to place the blame solely on Ms. Truss, stating that she was “very much of the view that we ought to seize the chance, and we hit the ground running,” and adding, “She’s extremely dynamic, very powerful. That is a tremendous strength.”
However, he stated that “the lesson we’ve learned” is to adopt a “tactical and measured approach.”
Asked who was responsible for the speed, he reiterated the former prime minister, who was “very much of the opinion that we have to move things quickly,” adding, “But I believe it was too fast.”
However, he said he did not tell Ms. Truss that at the time, telling the program: “Well, I stated after the budget that we were moving at a breakneck pace because we were moving so quickly, even after the mini-budget. And I remarked, “You know, we really ought to calm down.”
She stated, “Well, I only have two years,” to which I replied, “You will only have two months if you continue in this manner.”
In response to repeated requests for an apology, Mr. Kwarteng stated, “I do feel terrible for the folks going through this difficult time in terms of re-mortgaging. I believe that it is a stressful activity. And I truly sympathize with that.”
Ms. Truss appointed the longtime political ally to the Treasury as her first cabinet appointment after winning the Conservative leadership campaign in the summer.
In September, he unveiled in the House of Commons a slew of unfunded tax cuts that threw the markets into a tailspin.
After a series of U-turns, Mr. Kwarteng was fired by his supervisor and replaced by the current Chancellor, Jeremy Hunt, who reversed all of their plans within days.
Later, Ms. Truss resigned from her position.
“Grant her more time”
Regarding his dismissal, Mr. Kwarteng stated that Ms. Truss was “extremely emotional,” adding, “I can’t recall if she shed tears, but she was quite upset, and it was a difficult thing to do.
“And I believe she honestly believed that was the best way to get more time to get her premiership back on track.
“I certainly disagreed, since I believed that if chancellors are fired by the prime minister for accomplishing what the prime minister campaigned on, the prime minister would be in a very precarious position. And several individuals have told me, “I knew it was over when she fired you.”
However, he argued that they were still friends despite his having missed her call “a few days ago” and not yet returning it.
He concluded the interview by praising the new prime minister Rishi Sunak, stating that he was “really a very credible prime minister” and “extremely calm and very deliberate.
However, ahead of next week’s autumn statement, the ex-chancellor offered a warning that he still believes “you cannot build an economy or encourage economic growth by raising taxes.”
