Connect with us

Published

on

Former chancellor Kwasi Kwarteng will stand down at the next election.

Mr Kwarteng delivered the disastrous mini-budget, and was later sacked by then prime minister Liz Truss and replaced with Jeremy Hunt in a bid to reassure markets.

The Truss administration collapsed shortly after.

Politics latest: PM responds to criticism of ‘depraved bet’

Mr Kwarteng is the MP for Spelthorne in Surrey, and holds it with a majority of 18,393.

Writing on social media, Mr Kwarteng said: “Yesterday I informed my association chair of my decision not to stand at the next general election.

“It has been an honour to serve the residents of Spelthorne since 2010, and I shall continue to do so for the remainder of my time in parliament.”

More on Conservatives

According to a Sky News tally, he is the 55th Conservative MP to say he will not stand at the next election.

The announcement came shortly before Ms Truss launched her new “Popular Conservatives” movement.

Mr Kwarteng has worked for various Conservative governments since 2015, including as a Brexit minister, a business minister, before being promoted to the cabinet as business secretary by Boris Johnson in January 2021.

A close ally of Ms Truss, he was a vocal supporter of her campaign to become leader of the Tory Party and the country, and she appointed him chancellor on 6 September 2022.

He was sacked on 14 October 2022 – 38 days later.

Read more: What was in the mini-budget and what was scrapped

British Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng attend the annual Conservative Party conference in Birmingham, Britain, October 2, 2022. REUTERS/Hannah McKay
Image:
Mr Kwarteng and Ms Truss were close political allies. Pic: Reuters

On 23 September 2022, Mr Kwarteng delivered the mini-budget – the economic plan promised by Ms Truss which her supporters claimed would grow the economy.

It followed the announcement of a plan to cap energy prices for a typical household to £2,500 amid surging costs.

What followed was market and political chaos, worries that pension firms would collapse, and ultimately the defenestration of the UK’s second shortest-lasting chancellor. Only Iain MacLeod, who died 30 days after taking the role in 1970, has spent less time in charge of the country’s finances.

Eventually, the Bank of England intervened to prop up markets.

The energy cap – which has since been estimated to have cost £21bn – and the mini-budget did not have the impact the Truss team thought they would. She had promised “supply-side reform” that would boost growth in her campaigns.

Rishi Sunak, who lost in a vote with Tory members to Ms Truss, repeatedly criticised her plans as not being financially sound.

One issue that spooked the markets was the lack of an official forecast for the mini-budget – usually carried out by the Office for Budget Responsibility (OBR).

This, alongside measures like the scrapping of the top rate of income tax and holding corporation tax at 19%, led to uncertainty about the UK economy and how money would be raised in the future.

Mr Kwarteng was forced to U-turn on the income tax pledged in the middle of that year’s Conservative Party conference.

He then attended an International Monetary Fund summit in the US – before cutting the trip short to return to the UK.

As he was travelling to Downing Street, Mr Kwarteng learned he was being sacked on social media from a post by a journalist.

Read more from Sky News:
King’s cancer was ‘caught early’, Sunak says
PM is ‘sad’ parents forced to water down baby formula

Please use Chrome browser for a more accessible video player

Oct 2022: Kwarteng U-turns on income tax

Ms Truss later confirmed another U-turn, saying corporation tax would rise as originally planned to 25%.

Since these events, Mr Kwarteng has admitted that not involving the OBR in his planning was “probably a mistake”.

Continue Reading

Politics

Pavel Durov warns France is experiencing societal collapse

Published

on

By

Pavel Durov warns France is experiencing societal collapse

Pavel Durov warns France is experiencing societal collapse

According to the Telegram founder, France’s political leaders continue to make poor choices regarding censorship.

Continue Reading

Politics

Battle to convince MPs to back benefit cuts to more than three million households

Published

on

By

Battle to convince MPs to back benefit cuts to more than three million households

Plans for cuts to benefits which will impact more than three million households will be published today – as the government faces a battle to convince dozens of Labour MPs to back them.

Liz Kendall, the welfare secretary, has set out proposals to cut £5bn from the welfare budget – which she has said is “unsustainable” and “trapping people in welfare dependency”.

Disabled people claiming PIP, the personal independence payment which helps people – some of them working – with the increased costs of daily living, face having their awards reviewed from the end of next year.

An estimated 800,000 current and future PIP recipients will lose an average of £4,500 a year, according to a government assessment.

Please use Chrome browser for a more accessible video player

Government’s battle over welfare reforms

The government also intends to freeze the health element of Universal Credit, claimed by more than two million people, at £97 a week during this parliament, and cut the rate to £50 for new claimants.

Under pressure from Labour MPs concerned particularly that changes to PIP will drive families into poverty, Ms Kendall will announce new protections in the bill today.

Sky News understands they include a 13-week transition period for those losing PIP; a higher rate of Universal Credit for people with the most serious conditions; and a commitment that disabled people who take a job will not immediately lose their benefits.

More on Benefits

Some 40 Labour MPs have signed a letter refusing to support the cuts; and dozens of others have concerns, including ministers.

Please use Chrome browser for a more accessible video player

Benefits cuts explained

Ms Kendall is determined to press ahead, and has said the number of new PIP claimants has doubled since 2019 – at 34,000, up from 15,000.

Ministers say 90% of current claimants will not lose their benefits; and that many people will be better off – with the total welfare bill set to continue to rise over this parliament.

To keep the benefit, claimants must score a minimum of four points out of eight on one of the daily living criteria.

Ministers say claimants with the most serious conditions, who cannot work, will not face constant reassessments.

A £1bn programme is proposed, intended to give disabled people who can work tailored support to find jobs.

Some Labour MPs have angrily opposed the reforms – which will be voted on later this month.

Last night in a parliamentary debate, Labour MP for Poole Neil Duncan-Jordan disputed the Department for Work and Pensions (DWP) figures.

Read More:
Minister tells MPs controversial disability benefit reforms will go ahead
Big benefits cuts are imminent – here’s what to expect

He said: “We already know that PIP is an underclaimed benefit. The increase in claims is a symptom of declining public health and increased financial hardship disabled people are facing.

“We have the same proportion of people on working-age benefits as in 2015. This is not an economic necessity, it’s a political choice.”

Liz Kendall
Image:
Liz Kendall

Rachael Maskell, Labour MP for York, called the proposals “devastating “. She said: “We must change direction and not proceed with these cuts.”

Disability groups say they fear an increase in suicides and mental health conditions.

The government’s own assessment forecast an extra 250,000 people could be pushed into poverty – including 50,000 children. It did not include the impact of people moving into work.

Ms Kendall was urged by MPs on the Commons Work and Pensions committee to delay the reforms, to carry out an impact assessment, but wrote back to the committee saying the reforms were too urgent to delay – and that MPs would be able to amend the legislation.

Continue Reading

Politics

New York authorities freeze $300K linked to crypto scammers

Published

on

By

New York authorities freeze 0K linked to crypto scammers

New York authorities freeze 0K linked to crypto scammers

Officials reported that scammers had used crypto to pay for fake digital asset investment ads on social media platforms, leading to more than $1 million in losses for victims.

Continue Reading

Trending