UK fires Kwasi Kwarteng, chancellor of exchequer, after 38 days in office

Liz Truss, British prime minister, sacked Kwasi Kwarteng, the country’s chancellor of the exchequer on Friday.

The development comes just 38 days into his appointment, making him the second shortest-serving chancellor since 1970.

The chancellor of the exchequer is the British government’s chief financial minister and as such is responsible for raising government revenue through taxation or borrowing, and controlling overall government spending.

Last month, the United Kingdom government unveiled historic tax cuts funded by the biggest increase in borrowing since 1972.

The move was to sustain economic growth and increase income for the people.

Kwarteng, however, resigned after receiving the instruction to step aside.

In a letter to the prime minister on Friday, Kwarteng said his resignation does not change the need to improve the country’s economy, adding that the prime minister’s “vision is the right one”.

“You have asked me to stand aside as your chancellor. I have accepted,” the letter reads.

“When you asked me to serve as your chancellor, I did so in full knowledge that the situation we faced was incredibly difficult, with rising global interest rates and energy prices. However, your vision of optimism, growth and change was right. As have said many times in the past weeks, following the status quo was simply not an option.

“For too long, this country has been dogged by low growth rates and high taxation – that must still change if this country is to succeed.

“The economic environment has changed rapidly since we set out the growth plan on 23 September. In response, together with the Bank of England and excellent officials at the treasury, we have responded to those events, and I commend my officials for their dedication.

“It is important now as we move forward to emphasise your government’s commitment to fiscal discipline. The medium-term fiscal plan is crucial to this end, and I look forward to supporting you and my successor to achieve that from the backbenches.

“We have been colleagues and friends for many years. In that time, I have seen your dedication and determination. I believe your vision is the right one. It has been an honour to serve as your first chancellor.”

Meanwhile, the British prime minister announced the appointment of Jeremy Hunt, former health secretary as the new chancellor.

According to her, she is determined to see economic growth by scrapping parts of their economic package in a bid to survive the market and political turmoil gripping the country.

Responding to Kwarteng resignation letter, Truss said: “As a long standing friend and colleague. I am deeply sorry to lose you from the government.”