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Kwasi Kwarteng has been sacked as chancellor three weeks after his mini-budget unleashed chaos on the economy.

He was appointed to the role by Liz Truss only 38 days ago, making him the second-shortest serving chancellor after Iain Macleod, who died a month after being handed the job by Edward Heath.

Number 10 announced an hour after his sacking that Jeremy Hunt was replacing him.

Mr Kwarteng’s downfall was set in motion by the mini-budget on 23 September, in which he announced £45bn in unfunded tax cuts.

The mini-budget pushed the pound to a record low against the dollar, sent the cost of government borrowing and mortgage rates up and led to an unprecedented intervention by the Bank of England.

Chris Philp, who was heavily involved in plans for the mini-budget, has also lost his job as chief secretary to the Treasury but has been moved to the Cabinet Office as paymaster general.

In Mr Kwarteng’s letter to Ms Truss accepting he had been sacked, he said: “You have asked me to stand aside as your chancellor. I have accepted.”

More on Kwasi Kwarteng

He said he accepted the job “in full knowledge that the situation we faced was incredibly difficult, with rising global interest rates and energy prices”.

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Moment Kwarteng sacking announced

But he said the PM’s “vision of optimism, growth and change was right” and “following the status quo was simply not an option”.

He finished his letter by saying they have been “colleagues and friends for many years” and he believes her “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,” he wrote.

Moments later, he was seen leaving No 11 Downing Street and was driven away from the home he had only occupied for just over a month.

Ms Truss replied to his letter by saying she is “deeply sorry to lose” him from government and said “I deeply respect the decision you have taken today” – despite her sacking him.

She said they “share the same vision” for the UK and praised him for the energy price guarantee and the energy bill relief scheme, saying “thanks to your intervention, families will be able to heat their homes this winter and thousands of jobs and livelihoods will be saved”.

Ms Truss and Mr Kwarteng, who have been close friends for years, insisted that the turbulence in the UK economy was part of a global problem exacerbated by the war in Ukraine and post-pandemic recovery.

But last week, after open revolt by Tory MPs and a record surge for Labour in the polls, the prime minister announced the first major reversal of mini-budget policies when she backtracked on scrapping the 45p top rate of income tax.

Britannia Unchained on tour....#unplugged #unleashed #howthelightgetsin #festivalvibes. Pic: Liz Truss/Instagram
Image:
Kwasi Kwarteng and Liz Truss have been close friends for a long time. Pic: Liz Truss/Instagram

The second U-turn is expected to come on Friday afternoon, with the government set to raise corporation tax from 19% to 25% next April, despite promising not to do so in the mini-budget.

Less than an hour earlier, Mr Kwarteng had landed back in London after cutting short meetings with the International Monetary Fund in Washington DC.

He had been due to make a medium-term fiscal statement on 31 October.

The Conservative Party has now had four chancellors in the past three years – Mr Kwarteng, Nadhim Zahawi, Rishi Sunak and Sajid Javid.

And the next chancellor, who will be chosen by Ms Truss, will be the seventh Tory chancellor in 12 years.

While the PM’s focus will be on choosing a new chancellor, there is set to be a renewed focus on whether Ms Truss can remain in the job.

A Tory MP told Sky News: “The idea that the prime minister can just scapegoat her chancellor and move on is deluded.

“This is her vision. She signed off on every detail and she defended it.”

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Inside a NATO base in Poland – as residents bordering Russia say ‘scare tactic’ is needed

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Inside a NATO base in Poland - as residents bordering Russia say 'scare tactic' is needed

Along the thin strip of beach and woodland known as the Vistula Spit which marks the northernmost demarcation between Poland and the Russian exclave of Kaliningrad, there is not much in the way of a border.

Just some torn wire fencing and a few rotten posts which seem to stagger drunkenly into the shallows of the Baltic Sea.

Beneath a sign barring entry, we find a couple of empty bottles of Russian cognac and vodka.

It doesn’t feel like the edge of NATO territory.

Between Poland and the Russian exclave of Kaliningrad, there is not much in the way of a border.
Image:
This doesn’t feel like the edge of NATO territory

“I don’t see much protection. It’s not good,” says Krzysztof from Katowice, who has come to inspect the border himself.

“We have to have some kind of scare tactic, something to show that we are trying to strengthen our army,” says Grzegorz, who lives nearby.

“At the same time I think I would not base the defence of our country solely on our army. I am convinced that Europe or America, if anything were to happen, will help us 100%.”

More on Nato

Poland is investing massively in its defence, with military spending set to hit 4.7% of GDP in 2025, more than any other NATO country.

Polish Prime Minister Donald Tusk has said he will introduce voluntary military training for men of any age, and women too should they wish, so the army has a competent reserve force in the event of war.

Border between EU and the Russian Federation
Image:
Border between EU and the Russian Federation

He is investing $2.5bn in stronger border fortifications between Russia and Belarus, a project called East Shield which will include anti-tank obstacles, bunkers and potentially minefields too.

Along with its Baltic neighbours, Poland is withdrawing from the Ottawa convention against the use of land mines. It hasn’t committed to using them, but it wants to have that option.

We’ve been granted access to one of the cornerstones of Polish, and European defence, which is a couple of hours drive from the Vistula spit at the Redowicze military base.

Missile launcher
Image:
Aegis Ashore Poland

Aegis Ashore Poland, together with its sister site in Romania, are the land-based arms of NATO’s missile defence shield over Europe, which is run by the US navy.

They are symbols of the US commitment to NATO and to the protection of Europe.

The control room
Image:
The control room at Aegis Ashore Poland

And despite changes at the top of the Pentagon it is “business as usual”, says Captain Michael Dwan who oversees air and missile defence within the US Sixth Fleet.

“Our mission to work with NATO forces has been unchanged. And so our commitment from the United States perspective and what capability we bring to ballistic missile defence and the defence of NATO is championed here in Poland.”

Control room
Image:
The control room at Aegis Ashore Poland

As far as Russia is concerned, NATO’s two missile defence bases in Romania and Poland represent a NATO threat on their doorstep and are therefore a “priority target for potential neutralisation”, per Russia’s foreign ministry.

NATO says the installations are purely defensive and their SM-3 interceptor missiles are not armed and are not intended to carry warheads. Russia counters they could easily be adapted to threaten Russia.

Not the case, Captain Dwan says.

Missile launcher
Image:
Aegis Ashore Poland

Missile launcher
Image:
Aegis Ashore Poland

Read more from Sky News:
King and Queen meet Pope at the Vatican
British passports are about to get more expensive

“It’s not a matter of moving offensive weapons here into the facility, the hardware and the infrastructure is simply not installed.

“It would take months or years to change the mission of this site and a significant amount of money and capability and design.”

With so much marked “secret” on the site, it seems amazing to be granted the access.

But for NATO, transparency is part of deterrence. They want potential adversaries to know how sophisticated their radar and interception systems are.

They know that if they carried warheads on site, that would make them a target so they don’t.

Deterrence also depends on whether potential adversaries believe in the US’s commitment to NATO and to Europe’s defence.

On an operational level, as far as the troops are concerned, that commitment may still be iron-clad.

But as far as its commander-in-chief goes, there is still – as with so much around Donald Trump’s presidency – a great deal of uncertainty.

In the Oval Office on Wednesday afternoon President Trump suggested he might bundle a potential US troop drawdown in Europe together with the issue of EU trade and tariffs.

“Nice to wrap it up in one package,” he said, “it’s nice and clean”.

Probably not the way Europe sees it, not with a resurgent Russia on their doorstep, economic tailwinds breeding animosity and the notion of Pax Americana crumbling at their feet.

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Asianmarkets bounce back after Trump pauses higher tariffs for most countries – despite increasing those on China to 125%

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Asianmarkets bounce back after Trump pauses higher tariffs for most countries - despite increasing those on China to 125%

Asian markets have reacted positively after Donald Trump paused his so-called “reciprocal” tariffs on most of America’s trading partners for 90 days, despite the US president increasing those on China to 125%.

There have been fears of a global recession and stock markets around the world had plummeted after Mr Trump announced his “Liberation Day” tariffs on Wednesday 2 April.

However, Japan’s Nikkei share average was up 8.2% by 3.50am BST, while the broader Topix had risen 7.5%.

Similarly, the S&P 500 stock index had jumped 9.5% and global markets bounced back following Mr Trump’s announcement on Wednesday that the increased tariffs on nearly all trading partners would now be paused.

Tariffs latest: Trump gives reasons for pausing some tariffs

In a post on his Truth Social platform, Mr Trump said the “90-day pause” was for the “more than 75 countries” who had not retaliated against his tariffs “in any way”.

He added that during this period they would still have to pay a “substantially lowered” 10% tariff, which is “effective immediately”.

It is lower than the 20% tariff that Mr Trump had set for goods from the European Union, 24% on imports from Japan and 25% on products from South Korea.

The UK was already going to face a blanket 10% tariff under the new system.

Mr Trump said the increased 125% tariff on imported goods from China was “effective immediately”.

He added: “At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable.”

What’s in Trump’s tariff pause?

Here’s what Donald Trump’s tariff pause entails:

‘Reciprocal’ tariffs on hold

• Higher tariffs that took effect today on 57 trading partners will be paused for 90 days

• These include the EU, Japan and South Korea, all of which will face a baseline 10% duty instead

• Countries that already had a 10% levy imposed since last week – such as the UK – aren’t affected by the pause

China tariffs increased

• Trump imposed a higher 125% tariff on China

• That’s in addition to levies he imposed during his first term

• China had hit the US with 84% tariff earlier today, following tit-for-tat escalations

No change for Canada or Mexico

• Canadian and Mexican goods will remain subject to 25% fentanyl-related tariffs if they don’t comply with the US-Mexico-Canada trade agreement’s rules of origin

• Compliant goods are exempt

Car and metal tariffs remain

• Trump’s pause doesn’t apply to the 25% tariffs he levied on steel and aluminium in March and on cars (autos) on 3 April

• This 25% tariff on car parts does not come into effect until 3 May

Sectors at risk

• Copper, lumber, semiconductors, pharmaceuticals and critical minerals are expected to be subject to separate tariffs, in the same way autos are

Hours after Mr Trump announced the pause on tariffs for most countries, a White House official clarified that this did not apply to the 25% duties imposed on some US imports from Mexico and Canada.

The tariffs were first announced in February and Mexico and Canada were not included in the “Liberation Day” announcements.

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Donald Trump says China ‘wants to make a deal’

Hours before the 125% tariff on China was revealed, Beijing said it was increasing tariffs on US goods by 50%.

It meant tariffs of 84% would be enforced on US goods – up from the 34% China had previously planned.

Donald Trump speaks in the Oval Office. Pic: Reuters
Image:
Mr Trump spoke to reporters in the Oval Office. Pic: Reuters

China ‘want to make a deal’

Asked why he posted “BE COOL” on Truth Social hours before announcing his tariff pause, Mr Trump told reporters at the White House: “I thought that people were jumping a little bit out of line.”

“They were getting yippy, you know, were getting a little bit yippy, a little bit afraid,” he added.

Mr Trump continued: “China wants to make a deal, they just don’t know how to go about it.

“[They’re] quite the proud people, and President Xi is a proud man. I know him very well, and they don’t know quite how to go about it, but they’ll figure it out.

“They’re in the process of figuring out, but they want to make a deal.”

Read more:
Why Trump finally blinked

Is there method to madness amid market chaos?
Who’s most likely to see pensions hurt

White House press secretary Karoline Leavitt said the walk back was part of a grand negotiating strategy by Mr Trump.

“President Trump created maximum negotiating leverage for himself,” she said, adding that the news media “clearly failed to see what President Trump is doing here”.

US Treasury Secretary Scott Bessent also insisted Mr Trump had strengthened his hand through his tariffs.

“President Trump created maximum negotiating leverage for himself,” he said.

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Mr Bessent said Mr Trump decided to raise tariffs on China because Beijing hadn’t reached out to the US and instead increased its own levies on US goods.

Downing Street said that the UK will “coolly and calmly” continue its negotiations with the US.

A Number 10 spokeswoman said: “A trade war is in nobody’s interests. We don’t want any tariffs at all, so for jobs and livelihoods across the UK, we will coolly and calmly continue to negotiate in Britain’s interests.”

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Inside a NATO base in Poland – as residents bordering Russia say ‘scare tactic’ is needed

Published

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Inside a NATO base in Poland - as residents bordering Russia say 'scare tactic' is needed

Along the thin strip of beach and woodland known as the Vistula Spit which marks the northernmost demarcation between Poland and the Russian exclave of Kaliningrad, there is not much in the way of a border.

Just some torn wire fencing and a few rotten posts which seem to stagger drunkenly into the shallows of the Baltic Sea.

Beneath a sign barring entry, we find a couple of empty bottles of Russian cognac and vodka.

It doesn’t feel like the edge of NATO territory.

Between Poland and the Russian exclave of Kaliningrad, there is not much in the way of a border.
Image:
This doesn’t feel like the edge of NATO territory

“I don’t see much protection. It’s not good,” says Krzysztof from Katowice, who has come to inspect the border himself.

“We have to have some kind of scare tactic, something to show that we are trying to strengthen our army,” says Grzegorz, who lives nearby.

“At the same time I think I would not base the defence of our country solely on our army. I am convinced that Europe or America, if anything were to happen, will help us 100%.”

More on Nato

Poland is investing massively in its defence, with military spending set to hit 4.7% of GDP in 2025, more than any other NATO country.

Polish Prime Minister Donald Tusk has said he will introduce voluntary military training for men of any age, and women too should they wish, so the army has a competent reserve force in the event of war.

Border between EU and the Russian Federation
Image:
Border between EU and the Russian Federation

He is investing $2.5bn in stronger border fortifications between Russia and Belarus, a project called East Shield which will include anti-tank obstacles, bunkers and potentially minefields too.

Along with its Baltic neighbours, Poland is withdrawing from the Ottawa convention against the use of land mines. It hasn’t committed to using them, but it wants to have that option.

We’ve been granted access to one of the cornerstones of Polish, and European defence, which is a couple of hours drive from the Vistula spit at the Redowicze military base.

Missile launcher
Image:
Aegis Ashore Poland

Aegis Ashore Poland, together with its sister site in Romania, are the land-based arms of NATO’s missile defence shield over Europe, which is run by the US navy.

They are symbols of the US commitment to NATO and to the protection of Europe.

The control room
Image:
The control room at Aegis Ashore Poland

And despite changes at the top of the Pentagon it is “business as usual”, says Captain Michael Dwan who oversees air and missile defence within the US Sixth Fleet.

“Our mission to work with NATO forces has been unchanged. And so our commitment from the United States perspective and what capability we bring to ballistic missile defence and the defence of NATO is championed here in Poland.”

Control room
Image:
The control room at Aegis Ashore Poland

As far as Russia is concerned, NATO’s two missile defence bases in Romania and Poland represent a NATO threat on their doorstep and are therefore a “priority target for potential neutralisation”, per Russia’s foreign ministry.

NATO says the installations are purely defensive and their SM-3 interceptor missiles are not armed and are not intended to carry warheads. Russia counters they could easily be adapted to threaten Russia.

Not the case, Captain Dwan says.

Missile launcher
Image:
Aegis Ashore Poland

Missile launcher
Image:
Aegis Ashore Poland

Read more from Sky News:
King and Queen meet Pope at the Vatican
British passports are about to get more expensive

“It’s not a matter of moving offensive weapons here into the facility, the hardware and the infrastructure is simply not installed.

“It would take months or years to change the mission of this site and a significant amount of money and capability and design.”

With so much marked “secret” on the site, it seems amazing to be granted the access.

But for NATO, transparency is part of deterrence. They want potential adversaries to know how sophisticated their radar and interception systems are.

They know that if they carried warheads on site, that would make them a target so they don’t.

Deterrence also depends on whether potential adversaries believe in the US’s commitment to NATO and to Europe’s defence.

On an operational level, as far as the troops are concerned, that commitment may still be iron-clad.

But as far as its commander-in-chief goes, there is still – as with so much around Donald Trump’s presidency – a great deal of uncertainty.

In the Oval Office on Wednesday afternoon President Trump suggested he might bundle a potential US troop drawdown in Europe together with the issue of EU trade and tariffs.

“Nice to wrap it up in one package,” he said, “it’s nice and clean”.

Probably not the way Europe sees it, not with a resurgent Russia on their doorstep, economic tailwinds breeding animosity and the notion of Pax Americana crumbling at their feet.

Continue Reading

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