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Kwasi Kwarteng has been sacked as chancellor three weeks after his mini-budget unleashed chaos on the economy and Jeremy Hunt appointed in his place.

Mr Kwarteng 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 on Friday afternoon that former foreign secretary Mr Hunt was replacing him.

Liz Truss appoints Jeremy Hunt as chancellor. Pic: Andrew Parsons / No 10 Downing Street
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Liz Truss appoints Jeremy Hunt as chancellor. Pic: Andrew Parsons / No 10 Downing Street

Unapologetic Truss says she ‘acted decisively’ in tense news conference – follow latest updates

Mr Hunt’s appointment, just an hour after his predecessor was sacked, is a sign Ms Truss is trying to get her opponents on side.

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.

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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.”

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.

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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, have insisted over the past few weeks 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.

Read more:

Ministers say PM ‘cannot survive’ – so how could Liz Truss be removed?
Corporation tax raised in second major U-turn of mini-budget

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

The second U-turn came on Friday afternoon, when Ms Truss confirmed the government will raise corporation tax from 19% to 25% next April, despite promising not to do so in the mini-budget.

An hour before being sacked, 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, which will now be made by Mr Hunt.

The Conservative Party is now on its fifth chancellor in the past three years – Mr Hunt, Mr Kwarteng, Nadhim Zahawi, Rishi Sunak and Sajid Javid.

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Mr Hunt is the seventh Tory chancellor in 12 years.

There is now 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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Dozens injured after ‘savage’ Russian drone strike on Ukrainian railway station, Zelenskyy says

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Dozens injured after 'savage' Russian drone strike on Ukrainian railway station, Zelenskyy says

At least 30 people have been injured in a Russian drone strike on a Ukrainian railway station, President Volodymyr Zelenskyy has said.

Two trains were hit when Shostka station was targeted on Saturday, the head of Ukraine’s railways, Oleksandr Pertsovskyi, said in a Facebook post.

Three children were among the passengers injured, he said, adding an employee had also been hurt.

Ukraine’s president wrote on X: “A savage Russian drone strike on the railway station in Shostka, Sumy region.

“All emergency services are already on the scene and have begun helping people. All information about the injured is being established.

“So far, we know of at least 30 victims. Preliminary reports indicate that both Ukrzaliznytsia staff and passengers were at the site of the strike.”

Regional governor Oleh Hryhorov said a train heading to Kyiv had been hit and that medics and rescuers were working on the scene.

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Mr Zelenskyy and the governor posted pictures from the scene that show a passenger carriage on fire.

The head of the local district administration, Oksana Tarasiuk, told Ukraine’s public broadcaster that about 30 people
were injured by the strike. No fatalities were reported in the immediate aftermath.

Mr Pertsovskyi said the strikes were a “despicable attack aimed at stopping communication with our frontline communities”.

Moscow has stepped up its air strike campaign on Ukraine’s railway infrastructure, hitting it almost every day over the last two months.

They have also targeted energy infrastructure with a massive bombardment on Ukraine’s gas production facilities earlier this week.

Mr Zelenskyy’s top aide, Andriy Yermak, accused Russia of deliberately targeting the station and train, saying it was carrying out a “war against civilians”.

Overnight into Saturday, Russian drones and missiles pounded Ukraine’s power grid, a Ukrainian energy firm said.

The strike damaged energy facilities near Chernihiv, a northern city west of Shostka that lies close to the Russian border, and sparked blackouts set to affect some 50,000 households, according to regional operator Chernihivoblenergo.

On Friday, Russia carried out what officials have described as the biggest attack on Ukraine’s natural gas facilities since the war started in February 2022.

Russia fired a total of 381 drones and 35 missiles at Ukraine on Friday, according to Ukraine’s air force, in what officials said was an attempt to wreck the Ukrainian power grid ahead of winter.

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Hamas agrees to release all remaining Israeli hostages – but seeks further talks on rest of Trump’s peace deal

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Hamas agrees to release all remaining Israeli hostages - but seeks further talks on rest of Trump's peace deal

Hamas has said it agrees to release Israeli hostages, dead and alive, under Donald Trump’s peace plan for Gaza.

The group also said it wants to engage in negotiations to discuss further details, including handing over “administration of the enclave to a Palestinian body of independent autocrats”.

However, other aspects of the 20-point plan, it said, would require further consultation among Palestinians.

The announcement came just hours after President Trump had set a new deadline of Sunday to respond to his proposals, backed by the Arab nations.

The president and Israeli Prime Minister Benjamin Netanyahu unveiled the plan at the White House on Monday.

Israel agreed to the terms, which include an immediate ceasefire; the release of all hostages; Hamas disarming; a guarantee no one will be forced to leave Gaza; and a governing “peace panel” including Sir Tony Blair.

And on Friday night, a statement from Hamas confirmed “its approval to release all prisoners of the occupation – whether alive or the remains of the deceased – according to the exchange framework included in President Trump’s proposal”.

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Trump’s Sunday deadline threat

The group also said it was ready to engage in negotiations through mediators and that it appreciated “Arab, Islamc and international efforts, as well as the efforts of US President Donald Trump”.

But, Hamas official Mousa Abu Marzouk told Al Jazeera news the group would not disarm “before the Israeli occupation ends”.

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In a Truth Social post on Friday, Mr Trump said if Hamas did not agree to the peace deal by Sunday evening “all hell” would break out.

Ramping up pressure

He had posted: “An Agreement must be reached with Hamas by Sunday Evening at SIX (6) P.M., Washington, D.C. time. Every Country has signed on! If this LAST CHANCE agreement is not reached, all HELL, like no one has ever seen before, will break out against Hamas. THERE WILL BE PEACE IN THE MIDDLE EAST ONE WAY OR THE OTHER.”

There has been no official response from the US and Israel to the partial acceptance.

Israel has sought to ramp up pressure on Hamas since ending an earlier ceasefire in March.

It sealed the territory off from food, medicine and other goods for two and a half months and has seized, flattened and largely depopulated large areas of the territory.

Experts determined Gaza City had slid into famine shortly before Israel launched a major offensive aimed at occupying it.

An estimated 400,000 people have fled the city in recent weeks, but hundreds of thousands more have stayed behind.

Most of Hamas’ top leaders in Gaza and thousands of its fighters have already been killed, but it still has influence in areas not controlled by the Israeli military and launches sporadic attacks that have killed and wounded Israeli soldiers.

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Colombia is high on Trump’s troublemaker list – but coca farmers will keep producing to match US demand

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Colombia is high on Trump's troublemaker list - but coca farmers will keep producing to match US demand

“Listen man, we’re a narco state, it’s just how it is, if you want to see drug deals, I’ll show you drug deals – it’s Colombia.”

I’d only asked one of our Colombian producers in passing if it was possible to see drugs being traded on the streets of Medellin. I didn’t realise it was that simple.

Medellin is synonymous with drugs and cartels. The home of perhaps the most famous of all the drug lords, Pablo Escobar, it seems to revel in its notoriety.

There are pictures of Escobar everywhere, on posters, on caps, and on t-shirts. There are even guided tours to his grave, and a museum in his honour.

Stuart Ramsay speaks with a coca farmer, who earn very little from growing the crop
Image:
Stuart Ramsay speaks with a coca farmer, who earn very little from growing the crop

This is where the big business drug cartels were born, invented by Escobar himself, the original Latin American “Godfather”.

In an infamous district in Medellin, we were instantly confronted with the sounds of dealers on the streets shouting out their products for sale as we drove through.

“Cocaine! Pills! Ecstasy! Tusi!” they shouted. All available to a traffic jam of cars waiting to buy.

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Motorcycle delivery drivers queued to make the pick-up for their clients waiting in high-end apartments and nightclubs elsewhere in the city, while buyers on foot discreetly scored their drugs, before moving on.

Medellin was the home of Pablo Escobar and drugs are widely traded on its streets
Image:
Medellin was the home of Pablo Escobar and drugs are widely traded on its streets

‘Narco’ culture

It was chaotic and noisy, a place where lookouts use whistles to send signals to the dealers.

Two toots mean it’s all clear, a single toot is a warning – it means the police are nearby.

In the middle of this big open-air market for drugs, dimly lit restaurants and cafes served dinner. We passed one café where we saw a family sat at a table outside, celebrating a woman’s 70th birthday.

This neighbourhood runs a 24-hour drug selling market alongside the usual shops and cafes that spill over on to the pavement.

It is not illegal to grow coca, only to use it to produce cocaine
Image:
It is not illegal to grow coca, only to use it to produce cocaine

Although Colombia has a long history and fascination with “narco” culture and drug-taking, its immediate problem is that President Donald Trump has launched a war on Latin American drug cartels, manufacturers, and the nations the drugs come from – and through.

Venezuela is at the top of his hit list; he has launched strikes on boats off the Venezuelan coast that he says were carrying drugs. He has boosted American military presence in the Caribbean – sending ships, marines, helicopters, drones and jets into the region.

There is speculation he may be looking for regime change in Venezuela, and that the war on drugs is a front to remove President Nicolas Maduro from power, claiming the Venezuelan government is basically a drug cartel. Something they of course deny.

This coca plantation was hacked into the rainforest on the border of Colombia and Peru
Image:
This coca plantation was hacked into the rainforest on the border of Colombia and Peru

None of this bodes well for Venezuela’s neighbour Colombia, indeed President Trump has made it clear Colombia is high on his list of troublesome nations.

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There are other countries on his list, like Mexico, that he says has demonstrated willingness to clean up their act and take the war to Mexico’s deadly cartels.

Mr Trump’s gripe with Colombia isn’t necessarily that its society has a relaxed attitude to drug use – it is widespread across all classes – no, his problem is that Colombia is one of the biggest producers of cocaine in the world, and it feeds the biggest market, which is the United States of America.

Coca plantations are hidden miles away from other people in the Amazon
Image:
Coca plantations are hidden miles away from other people in the Amazon

Hidden away, miles from people

It seems that the president’s view is that the supplier is the problem, not necessarily the user.

Cocaine is extracted from the coca leaf, which is grown in abundance in Colombia, Peru, and Bolivia.

Growing the coca plant in these countries is not illegal, and the leaf itself is often used for other purposes. The plant only becomes illegal when it’s used for cocaine production.

I wanted to meet the farmers who grow coca to find out if they are the masterminds of a multi-billion-pound international drugs business, or just farmers meeting international demand.

My journey began just after dawn in pouring rain on the Amazon River in Colombia.

Perhaps unsurprisingly the plantations are hidden away in remote areas, miles away from people.

Stuart Ramsay in the rainforest
Image:
Stuart Ramsay in the rainforest

We travelled for hours in the rain, on a small boat with a guide, passing indigenous communities who have nothing to do with the business hiding in their forest.

The river narrowed as we got closer to our destination, and five hours later, after navigating through broken tree trunks and low hanging branches, we arrived at an eight hectare coca plantation hacked into the rainforest bordering Colombia and Peru.

The crop, which is two-and-a-half years old, is hidden by the trees and the river.

They are about to start harvesting it, but it’s incredible just how many leaves they need.

The farmer says that for every 70 grams of cocaine produced, the cartel producers need 30 kilograms of leaves.

Colombia is one of the biggest producers of cocaine
Image:
Colombia is one of the biggest producers of cocaine

Only way to provide for his family

That’s a lot of picking – and the farmer will earn just $7 for those 30 kilograms of leaves.

The cocaine business might be incredibly lucrative for the cartels that control it, but at the very bottom the farmers hardly get paid a thing.

And though he is worried about getting caught, the farmer I meet sees it as the only way to provide for his family.

“For me it’s very valuable, it’s my sustenance, the way for sustaining life,” he told me.

“We are aware that illegal processing isn’t good for anybody, not exactly, you can’t say I am doing this, and this is good for people, no, this harms the entire community, everyone,” he explained when I asked him if he was at all conflicted about his crop.

“But we all make sacrifices, and we struggle to make our way in life.”

It’s hard to believe that the global business of manufacturing and shipping cocaine around the world all starts with these fairly innocuous looking coca leaves.

And whatever Donald Trump says, they will keep producing as long as users in America, Europe, and indeed the world, demand it.

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