Kwasi Kwarteng has been sacked as chancellor after his disastrous mini-budget saw his own party fall apart at the seams.
Kwarteng confirmed the move in a letter published to his Twitter page, in which he confirmed Truss has “asked him to stand aside.”
In the letter he said he will support his successor but insisted “following the status quo was simply not an option.”
In a letter to the Prime Minister, posted on his Twitter account, Kwarteng said: “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.”
Less than 40 days into the job, Kwarteng’s unfunded tax-cutting plan saw the Bank of England step in to secure the market after mortgage rates soared and the value of the pound fell.
Just yesterday, Kwarteng told reporters he was “100% not going anywhere” and said he stood by the policies in his budget.
But just hours later he cut short his meetings at the IMF and flew back to Westminster.
Former foreign secretary Jeremy Hunt has been confirmed as Kwarteng’s replacement, signalling a major shift in policy direction.
A more centrist figure, Hunt is unlikely to share Kwarteng and Truss’s ideological free market commitment to tax cuts.
Truss is likely to come under further criticism and questions why she herself is staying in her post, after she insisted the pair were in “lockstep” over the budget.
Kwarteng’s 38-day tenure makes him the second shortest-serving UK chancellor in history.
The shortest serving chancellor was Iain Macleod in 1970, who died of a heart attack after 30 days.
Kwasi Kwarteng’s letter in full
“Dear Prime Minster.
“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.
“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.”
