Former chancellor Kwasi Kwarteng stated that he cautioned Liz Truss against rushing her disastrous economic plans.
In his first interview since being fired by the then-prime minister, Mr. Kwarteng told TalkTV that he had warned her to “slow down” after the mini-budget in September.
He stated that he warned her that she would only last “three or four weeks” if she fired him.
“I had no idea it would only last six days,” he added.
Ms. Truss abruptly sacked Mr. Kwarteng in October, two weeks after their tax-cutting mini-budget shook the financial markets.
She then abandoned almost the entirety of the plan to retain power but announced her resignation a few days later – just over six weeks after assuming office – as Conservative MPs withdrew their support.
Rachel Reeves, the shadow chancellor for Labour, stated that it was “absolutely appalling” that Kwasi Kwarteng conducted this interview.
She added, “He crashed the economy with his mini budget just a few weeks ago, causing unfathomable damage to people.”
Mr. Kwarteng told TalkTV that he had cautioned Ms. Truss against implementing economic measures at “breakneck speed” after the mini-budget.
“She stated, ‘Well, I only have two years,’ to which I replied, ‘You will only have two months if you continue in this manner.’ Unfortunately, that is exactly what transpired.”
He added, “I believe the prime minister thought that we needed to move quickly. But I believe it was too fast.”
Mr. Kwarteng, a longtime political ally, and friend of Ms. Truss disclosed that she was “distressed and emotional” when she summoned him back from a trip to the United States to fire him.
He also disclosed that he learned he was going to be fired when a journalist tweeted about it while he was driving to Downing Street.
He claimed he told her, “This is insane. “Prime ministers do not dismiss chancellors.”
Liz Truss and Kwasi Kwarteng previously appeared to be the ideal duo to run a Conservative government: freedom-loving tax cutters who prioritized growth and who were also lifelong friends.
But we know that did not transpire. Mr. Kwarteng has now pointed the finger of responsibility squarely at his former supervisor. After presenting the mini-budget, he claims to have advised her to let off the gas.
Given that Mr. Kwarteng told that there was “more to come,” this may raise some suspicions. That likely did not boost investor confidence.
He insists on maintaining his friendship with Ms. Truss. But in this interview, he reveals details of private conversations surrounding his dismissal that Ms. Truss may have wished had remained behind Downing Street’s walls.
Once, he visited television studios arguing that she would be an excellent prime minister. It appears that they are no longer as close as they once were.
What is next for Mr. Kwarteng? It does not appear that he will be an awkward backbencher, as he has pledged his total commitment to Rishi Sunak.
It is crucial to keep in mind that this is only one side of the events that transpired as Ms. Truss’ premiership began to fall apart. When will she finally speak?
The former chancellor stated that he did not believe the prime minister could fire him “simply for accomplishing what she campaigned on” during her summer campaign for the Tory leadership.
Her promises to cancel a scheduled increase in company tax and reverse a rise in national insurance were emphasized as essential to her campaign platform.
Ms. Kwarteng’s decision to unveil the mini-budget without publishing an evaluation by the government’s fiscal watchdog and his repeated pledges to slash taxes were afterward viewed as important in convincing investors that the government had a viable plan to keep debt levels in check.
Mr. Kwarteng acknowledged in the interview that he bore “some responsibility” for the rate of development.
When asked if he would like to apologize to homeowners facing higher mortgage rates as a result of the mini-budget, he responded, “I don’t want to relive the past; I just want to focus on next week.” I regret the volatility that occurred.”
He asserted that he and Ms. Truss were “still friends” and that they had spoken within the past week. He disclosed that he had not yet answered her call from two days ago, but said, “I will call her back.”
Mr. Kwarteng stated that he was not responsible for the government’s present financial difficulties.
The only thing they could conceivably criticize us for is the interest rates, and both interest rates and gilt yields have declined,” he said.
The national debt was not created during Liz Truss’ 44-day tenure as president.
The Chancellor, Jeremy Hunt, seemed to reject this proposal.
When specifically questioned about his predecessor’s remarks, Mr. Hunt responded, “Well, all I can say is that when we released a fiscal statement, it did not demonstrate how we planned to reduce our indebtedness over the medium term.
“As a result of the markets’ negative response, we have learned that you cannot fund expenditure or borrowing without demonstrating how you will pay for it, and that is what I will do.”
Since leaving Downing Street last month, Ms. Truss has not spoken about her tenure in office.
In a resignation statement outside 10 Downing Street, she defended her lower-tax agenda for the United Kingdom, stating, “We simply cannot afford to be a low-growth society in which the government consumes a growing portion of our national income.”
In a previous interview, she admitted that the tax cuts in the mini-budget went “too far, too quickly.”
