Live Updates: U.K. Government Reverses Course on Fiscal Plan That Rattled Markets
New York TimesDec 25, 2022
The Facts
Kwasi Kwarteng has been sacked as the UK's chancellor of the exchequer, just 3 weeks after his mini-budget on Sept. 23 caused turmoil in British markets and saw the pound hit a record low against the dollar.
Kwarteng - who was called back early from Washington by PM Liz Truss - became the second shortest-serving chancellor in British history on Friday, after just 38 days on the job. Since the mini-budget announced £45B in unfunded tax cuts, the government has already U-turned on plans to scrap the top rate of income tax.
The Spin
Right narrative
Supporters of Truss's defeated leadership rival Rishi Sunak are undermining democracy by plotting against the current Prime Minister. After stabbing Boris Johnson in the back, party grandees now intend to destabilize Truss's premiership and replace her, despite her mandate as leader. Conservatives must unify behind Liz Truss and her government for the sake of decency and the sake of the party.
Left narrative
Kwasi Kwarteng has been pushed from the farcical merry-go-round of Downing Street politics so that Liz Truss might remain a little bit longer. Yet again the Conservatives are plotting leadercide against one of their own, whose incompetence has obliterated the chances of Conservative party victory in the next election. The end of Truss's political career is inevitable and imminent.