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Jeremy Hunt named chancellor after Kwasi Kwarteng sacked as Liz Truss expected to U-turn over mini-budget – live | Politics

Downing Street confirms Jeremy Hunt is the new chancellor

No 10 has confirmed that Jeremy Hunt has been appointed Britain’s new Chancellor of the Exchequer.

The former foreign secretary and Tory leadership contender will be the fourth chancellor this year.

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Richard Adams

One of the largest teaching unions is to carry out its threat to hold a strike ballot, after the government in England ignored its demand for a 12% pay rise this year.

The NASUWT union announced that a ballot for industrial action will be sent to members, with voting opening on 27 October and closing on 9 January. The ballot will be sent to members in Wales and Scotland as well as England.

Teachers in England have been offered only a 5% pay increase, with schools minister Jonathan Gullis saying this month that the government “won’t budge”.

Patrick Roach, the union’s general secretary, said:

The NASUWT has done everything possible to seek a resolution to this dispute and to avoid escalation of industrial action in schools and colleges.

The 5% pay award for teachers and headteachers is unacceptable at a time when inflation is running at more than 10% and it will result in even more financial misery for hard working teachers.

Ministers will be entirely responsible for industrial action unless they act immediately to deliver a better pay deal for teachers.

The National Education Union, the other major teaching union, has also announced that a preliminary ballot of members found 86% would support a vote on strike action for an above-inflation pay rise. The preliminary vote saw a 62% turn-out among members.

Edward Argar confirmed as new Chief Secretary to the Treasury

Downing Street has confirmed reports that Chris Philp is out as chief secretary to the Treasury, and has been replaced by Ed Argar.

Chris Philp has been appointed Paymaster General, Downing Street said.

Ryan Bourne, the former head of public affairs at the rightwing Institute for Economic Affairs, has called on Liz Truss to resign as prime minister.

Bourne, who was a supporter of Truss, says there is “no point being in position but not in power”.

I’m sorry to say that the honourable path from here would be for @trussliz to resign. The Prime Minister was culpable for not making some offsetting fiscal adjustments alongside her trailed tax cuts. The Tory party have since closed off any other route to letting her maintain 1/

— Ryan Bourne (@MrRBourne) October 14, 2022

those core pledges. There is no point being in position but not in power. Her backbench MPs are forcing her to consolidate the public finances via means antithetical to her economic ideas. She should let the social democrats have their party back.

— Ryan Bourne (@MrRBourne) October 14, 2022

Downing Street confirms Jeremy Hunt is the new chancellor

No 10 has confirmed that Jeremy Hunt has been appointed Britain’s new Chancellor of the Exchequer.

The former foreign secretary and Tory leadership contender will be the fourth chancellor this year.

Truss letter to Kwarteng in full

Here’s the letter from Liz Truss to her former chancellor Kwasi Kwarteng in full:

Liz Truss’s response to Kwarteng ties him into economic plan – he referred to it as “your” vision, she says “we share the same vision”.

Also, she implies he resigned rather than was sacked – “I deeply respect the decision you have taken today”.

Scapegoat? pic.twitter.com/0cvAy5zeon

— Pippa Crerar (@PippaCrerar) October 14, 2022

The bottom of the letter suggests that the letter to Kwarteng was written by Kwarteng himself:

The letter from prime minister Liz Truss accepting the resignation of chancellor Kwasi Kwarteng shows Kwarteng’s name rather than that of Truss under the signature.
The letter from prime minister Liz Truss accepting the resignation of chancellor Kwasi Kwarteng shows Kwarteng’s name rather than that of Truss under the signature. Photograph: 10 Downing Street

Liz Truss has responded to Kwasi Kwarteng’s letter confirming that he was sacked by the prime minister.

Truss said she “deeply respects” the decision he has taken to “put the national interest first” and stand down.

Truss said:

As a long-standing friend and colleague, I am deeply sorry to lose you from the Government.

We share the same vision for our country and the same firm conviction to go for growth.

You have been Chancellor in extraordinarily challenging times in the face of severe global headwinds.

The Energy Price Guarantee and the Energy Bill Relief scheme, which made up the largest part of the mini budget, will stand as one of the most significant fiscal interventions in modern times.

Thanks to your intervention, families will be able to heat their homes this winter and thousands of jobs and livelihoods will be saved.

You have cut taxes for working people by legislating this week to scrap the increase in National Insurance Contributions.

You have set in train an ambitious set of supply side reforms that this Government will proudly take forward. These include new investment zones to unleash the potential of parts of our country that have been held back for too long and the removal of EU regulations to help British businesses succeed in the global economy.

I deeply respect the decision you have taken today. You have put the national interest first.

I know that you will continue to support the mission that we share to deliver a low tax, high wage, high growth economy that can transform the prosperity of our country for generations to come.

Thank you for your service to this country and your huge friendship and support. I have no doubt you will continue to make a major contribution to public life in the years ahead.

Labour’s shadow chancellor, Rachel Reeves, has responded to Liz Truss’s decision to fire Kwasi Kwarteng as chancellor after his disastrous mini-budget.

She said:

Changing the chancellor doesn’t undo the damage that’s already been done.

It was a crisis made in Downing Street. Liz Truss and the Conservatives crashed the economy, causing mortgages to skyrocket, and has undermined Britain’s standing on the world stage.

We don’t just need a change in chancellor, we need a change in government. Only Labour offers the leadership and ideas Britain needs to secure the economy and get out of this mess.

Jeremy Hunt appointed new chancellor

No 10 has confirmed that Jeremy Hunt will replace Kwasi Kwarteng as chancellor, the Guardian’s Pippa Crerar writes.

🚨 No 10 source confirms speculation that Jeremy Hunt will take over as chancellor.

— Pippa Crerar (@PippaCrerar) October 14, 2022

She has also confirmed that Chris Philp is out as chief secretary to the Treasury.

Treasury source confirms Chris Philp is out as chief secretary – he’s expected to move to Cabinet office.

— Pippa Crerar (@PippaCrerar) October 14, 2022

The Times’ Steven Swinford is also reporting that Chris Philp is out as the chief secretary to the Treasury.

Philp has been replaced by Ed Argar, Swinford says.

CONFIRMED:

Chris Philp is out as Chief Secretary to the Treasury and will be replaced by Ed Argar

Not clear if anything’s happening with other ministerial roles

— Steven Swinford (@Steven_Swinford) October 14, 2022

Jeremy Hunt is the new chancellor, the Times’ Steven Swinford is reporting.

Hunt’s appointment will be announced at this afternoon’s press conference, he said.

No 10 has confirmed that the prime minister’s conference will be held at 2.30pm in the Downing Street briefing room.

Amid reports that senior Tories are preparing to call on Liz Truss to resign as prime minister within days, many in the Conservative party will say she is as much to blame for the turmoil as Kwasi Kwarteng.

The Guardian’s John Harris says Truss surely can’t be far behind her former chancellor.

Truss herself surely not far behind. This govt is utterly screwed

— John Harris (@johnharris1969) October 14, 2022

Isabel Oakeshott from Talk TV is also struggling to see how Truss can survive this after “infuriating literally everyone, and making the entire nation poorer”.

I am really, really struggling to see how @trussliz survives this. She has succeeded in infuriating literally everyone, and making the entire nation poorer. Abandoning her growth agenda means she became leader on a false prospectus.

— Isabel Oakeshott (@IsabelOakeshott) October 14, 2022

ITV News’ Paul Mason points out that Liz Truss cannot lay the blame for the mini-budget chaos entirely on Kwasi Kwarteng, as she was repeatedly warned about the risk of her economic policies during the leadership campaign.

The difficulty for the Prime Minister is that she can’t wholly blame Kwasi Kwarteng for the budget when she was repeatedly warned/asked during the leadership contest about the risk of her economic policies. Will she offer an apology / contrition at today’s press conference?

— Paul Brand (@PaulBrandITV) October 14, 2022

Adam Payne from PoliticsHome says Chris Philp, the chief secretary to the Treasury, may also be on his way out.

He quotes a Whitehall source as saying that Liz Truss is “trying to put clear blue water between the shit show and her”.

Kwasi Kwarteng confirms he was sacked

Kwasi Kwarteng has confirmed he was asked “to stand aside” as chancellor.

In a letter to the prime minister, Kwarteng writes:

You have asked me to stand aside as your Chancellor. I have accepted.

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 I 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.

Kwarteng continues:

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.

Your success is this country’s success and I wish you well.

Here’s the moment BBC News announced the sacking of Kwasi Kwarteng as chancellor.

Moment the BBC reports sacking of Kwasi Kwarteng as chancellor – video

Kwasi Kwarteng sacked after six weeks as chancellor

Kwasi Kwarteng has been sacked after his disastrous mini-budget caused market turmoil, a bailout of pension funds and rising mortgage rates, Downing Street has confirmed.

Downing Street sources confirm that Kwasi Kwarteng has now been sacked as Chancellor.

— Pippa Crerar (@PippaCrerar) October 14, 2022

Kwarteng is leaving the position after just six weeks in the job, despite Liz Truss, the prime minister, having also signed off an array of unfunded tax cuts in the mini-budget last month.

He had returned early from the International Monetary Fund meeting in the US to discuss further U-turns in the budget, after a move to drop the 45p tax rate failed to calm the economic situation.

Nicholas Watt from BBC Newsnight has been told that a group of senior Tories will call on Liz Truss to resign as prime minister next week.

A group of senior Tories have been holding discussions + have decided the following: the sacking of @KwasiKwarteng will prompt them to come out publicly next week + call on @trussliz to resign. My source: “These are serious people. The PM will find it difficult to survive.”

— Nicholas Watt (@nicholaswatt) October 14, 2022





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