Poppadom plot to out the PM: Rebel MPs gather around takeaway curries as they seek new leader to avert Tory ‘wipeout’ and discuss tactics
- It was after 9pm on Monday when a takeaway was delivered to Portcullis House
- The 20 or so senior MPs gathered to discuss more tactics than personalities
- Most of those present were supporters of the former chancellor Rishi Sunak
- Party rules prevent a formal challenge against a new leader for at least 12 months
It was after 9pm on Monday when a large takeaway curry order was delivered to the MPs’ office block at Portcullis House, a stone’s throw from Big Ben.
Plotting is hungry work and the 20 or so senior MPs gathered in the offices of a former minister had been hard at it for some time.
Most of those present were supporters of the former chancellor Rishi Sunak, many had served in government, including several in the Cabinet.
As they cracked open the poppadoms, the mood was grim but determined.
‘It’s not just about the survival of the Government or even the Conservative Party,’ said one source later.
‘People are suffering real world pain from the incompetence we have seen – I’ve got friends who cannot get a new mortgage. We have a duty to stop this and restore a basic level of competence’.
Another said: ‘We are going down, but there is still a chance to salvage something from the wreckage.
‘If we let things carry on as they are we will be wiped out – it will take a decade to rebuild. We cannot let that happen.’
It was after 9pm on Monday when a large takeaway curry order was delivered to the MPs’ office block at Portcullis House, a stone’s throw from Big Ben
Plotting is hungry work and the 20 or so senior MPs gathered in the offices of a former minister had been hard at it for some time
Most of those present were supporters of the former chancellor Rishi Sunak, many had served in government, including several in the Cabinet
The discussion at the late-night meeting was more about tactics than personalities.
‘If this is going to work we need to make it less about the leader – whether it is Rishi or Penny [Mordaunt] or whoever – and more about the team,’ said one of those present.
‘We have to try to present a united front and put together a team of all the talents.’
Tory party rules preclude a formal challenge against a new leader for at least 12 months, regardless of how many letters of no confidence are submitted by MPs.
Discussion centred around whether the Cabinet or Tory shop steward Sir Graham Brady could be persuaded to tell Liz Truss it was time to go.
But other ideas were floated, including approaching David Cameron, Theresa May, Sir John Major and other former leaders to make an unprecedented joint intervention. ‘None of them are happy apart from Iain [Duncan Smith],’ said one source.
‘In fact most of them are aghast at what they have seen.’
There was no agreement on the exact way forward, apart from an absolute determination that the new leader should be stitched up by MPs without giving party members a vote.
‘There is no way we are leaving this to the members,’ said one former Cabinet minister. ‘They have just given us Liz.
As they cracked open the poppadoms, the mood was grim but determined. Pictured: Grant Shapps
The discussion at the late-night meeting was more about tactics than personalities. Pictured: Suella Braverman
‘We are not asking them again.’ Last night there was speculation that the PM’s decision to sack Kwasi Kwarteng could be the trigger for a major intervention against her by senior figures.
Nadine Dorries has savaged the ‘absurd’ plotters, claiming they were ‘all Sunak supporters’.
‘They agitated to remove Boris Johnson and now they will continue plotting until they get their way,’ she said.
‘It’s a plot not to remove a PM but to overturn democracy.’ But the ‘Poppadom Plot’ is far from the only threat faced by Miss Truss.
She tried to pick a Cabinet of loyalists but, after a fractious party conference, some already appear to be peeling off.
Home Secretary Suella Braverman has publicly criticised the U-turn over the 45p top tax rate and has clashed with the PM over immigration and drugs.
‘It is incredible,’ said one minister. ‘She has not stopped campaigning and doesn’t seem to care who knows it.’
Senior MPs claim Miss Mordaunt is ‘openly’ canvassing MPs for their support despite being in the Cabinet.
Tory party rules preclude a formal challenge against a new leader for at least 12 months, regardless of how many letters of no confidence are submitted by MPs. Pictured: Penny Mordaunt
Discussion centred around whether the Cabinet or Tory shop steward Sir Graham Brady (pictured) could be persuaded to tell Liz Truss it was time to go.
Sources say the Commons leader, who has publicly criticised Miss Truss’s plan for a squeeze on benefits, looked away during a meeting of the Cabinet on Tuesday when the PM attempted to lay down the law on collective responsibility.
Former transport secretary Grant Shapps, who was brutally sacked by the PM last month, has been a fixture in Portcullis House, chatting to jittery Tories as he compiles a spreadsheet of potential rebels on his Samsung smartphone.
And then there is Michael Gove. The arch plotter, who twice helped bring down Boris Johnson, has kept a low profile since last week’s Tory conference where he single-handedly torpedoed the PM’s plan to axe the top rate of tax.
Miss Truss attempted to rally the troops on Wednesday evening when she fielded questions from backbench MPs for an hour at a meeting of the 1922 Committee.
But if anything it made matters worse. Respected ex-minister Robert Halfon accused her of ‘trashing’ more than a decade of work to strengthen Tory support among blue collar workers.
Grim-faced MPs leaving the meeting described the atmosphere as ‘funereal’.
‘People are scared,’ said an ex-minister. ‘Almost everyone wanted her to make a success of it but it has been a disaster.
‘The worst thing is that she gave us no hope that she can get us out of this, or even that she understands how bad it is – almost as if she was on TV rather than talking openly with colleagues.’
Matters may get worse yet. Miss Truss’s decision to jettison much of her economic project now leaves her vulnerable to attacks from even those MPs who backed her. ‘Her leadership authority is now shattered,’ said one. ‘Party discipline has totally broken down.’
Miss Truss’s fate is not sealed yet. Her opponents have no clear plan to remove her and are divided on who should come next.
Philip Hammond, who is no friend of the PM’s politics, said: ‘I don’t believe the country would allow another change of leader without an election and I don’t think Conservative MPs want an election.’
‘Robotic and disrespectful’: Tories warn that Liz Truss made things WORSE with eight-minute press conference announcing humiliating corporation tax U-turn after she ‘threw Kwasi Kwarteng under the bus’ and brought back Jeremy Hunt
Liz Truss faces mounting Tory fury tonight after executing another humiliating U-turn on her flagship tax cuts today – sacking Kwasi Kwarteng and bringing back Jeremy Hunt in a desperate bid to quell market chaos.
Barely a month into her premiership, Ms Truss fronted a make-or-break press conference to abandon plans to keep corporation tax at 19p, rather than hiking it to 25p in April.
She said she had made a ‘difficult’ decision for ‘economic security’ and ‘in the national interest’, but argued that her ‘mission’ to reduce taxes remained.
‘We will get through this storm,’ she said. ‘The mission remains the same.. but ultimately we have to make sure we have economic stability.’
Under fierce fire from journalists, Ms Truss refused to apologise for ‘trashing’ the Tories’ reputation – before abruptly walking out after eight minutes and just four questions.
Downing Street will now be waiting anxiously to see if the PM has done enough to cling on, but the early response was not promising, with one former Cabinet minister telling MailOnline the PM had been ‘robotic’ and made the situation far worse.
‘What an absolutely shambles. She’s got to go. After eight minutes… ”I’m going to walk off, I don’t have to take this sh**”,’ the MP said.
‘She has burned the house down and she is the chief firefighter. She is now going to be running the country on policies that she trashed completely in the leadership contest… why isn’t she joining Kwasi under the bus?’
Tory veteran Christopher Chope, who toured broadcast studios supporting Ms Truss yesterday, complained this evening that the party is a ‘laughing stock’ saying he is in a ‘state of despair and utter disbelief’.
Another previously staunch backer, John Redwood, warned Ms Truss has ‘a lot of work to do’.
Fellow Truss supporter, Chris Loder, expressed his hope the PM could continue but admitted: ‘I get the feeling from the parliamentary party and a number of her supporters that is actually quite difficult at the moment.’
However, other MPs urged colleagues to be ‘calm’, saying talk of replacing Ms Truss or a snap election were ‘rash’.
And a senior Conservative said the next few weeks will be critical. They said: ‘She didn’t settle things, but I think Jeremy Hunt’s appointment is shrewd. Her real challenge will be to last a few weeks. If she lasts beyond Christmas she will have stabilised.’
Streve Brine, an ally of Mr Hunt, suggested the new Chancellor would be ‘chief executive’ of the Government to Ms Truss as ‘chairman’ following the exit of Mr Kwarteng.
Looking uncomfortable, Ms Truss took to the podium inside No9 Downing Street this afternoon to make a statement confirming the corporation tax rethink.
Asked why she should remain as PM, she said: ‘I’m absolutely determined to see through what I have promised, to deliver a higher growth, more prosperous United Kingdom, to see us through the storm we face.
‘We’ve already delivered the energy price guarantee making sure people aren’t facing huge bills this winter.
‘But it was right in the face of the issues that we had that I acted decisively to ensure that we have economic stability, because that is vitally important to people and businesses right across our country.’
Challenged on whether she would apologise to her party, Ms Truss told reporters: ‘I am determined to deliver on what I set out when I campaigned to be party leader.
‘We need to have a high-growth economy but we have to recognise that we are facing very difficult issues as a country.
‘And it was right, in the national interest, that I made the decisions I’ve made today to restore that economic stability so we can deliver, first of all helping people through this winter and next winter with their energy bills, but also making sure that our country is on the long-term footing for sustainable economic growth.’
The chaos saw the Pound shedding the gains it had made yesterday when the markets moved on the growing likelihood of a big shift on the unfunded tax cuts.
It rose back above $1.12 as the new Chancellor was announced, but slipped again as Ms Truss – who was due to head to Chequers for the weekend – delivered her extremely brief press conference.
The Treasury tonight announced that Mr Hunt would stick to 31st October as the date for setting out Government action on debt reduction.
Mutinous Conservative MPs have been touting Rishi Sunak and Penny Mordaunt as a ‘dream ticket’ to take over from Ms Truss. Others want to see a comeback from Boris Johnson.
On another brutal day with Britain wracked by political and economic crisis:
- Deputy PM Therese Coffey is calling round supporters of Ms Truss in a bid to shore up her position;
- Jeremy Hunt has previously backed slashing corporation tax to just 15 per cent, even lower than Ms Truss wanted to keep it;
- Polls have shown Labour more than 20 points ahead of the Tories, enough for a massive landslide win at an election;
- Ms Truss’s personal ratings are now worse than any other modern PM a month into their term in office;
Barely a month into her premiership, Ms Truss fronted a make-or-break press conference to abandon a major strand of her radical economic reforms
Ms Truss ignored an array of hands from journalists wanting to ask questions as she walked out of the press conference
The Chancellor returned to Downing Street after leaving an IMF summit in Washington a day early amid signs that he and the PM are planning a massive U-turn that would scrap wide-ranging tax cuts
Jeremy Hunt, former foreign secretary and two-time failed leadership contender, has been installed as the new Chancellor
Mr Hunt entered 10 Downing Street for talks with the PM this afternoon, before leaving just over an hour later
Ms Truss spoke with her newly-appointed Chancellor in the Cabinet Room in No10
Almost half of Tory voters believe party made the WRONG choice of leader
Almost half of Conservative supporters believe the party made the wrong choice of leader this summer, according to a shock new poll.
Tory supporters are apparently suffering a case of buyer’s remorse with Liz Truss, with 48 per cent believing the party had picked the wrong leader, YouGov data shows.
Only 28 per cent believe the party made the right choice, according to the survey, conducted for The Times.
Meanwhile, among the wider electorate, just 9 per cent think the Conservatives chose the right leader in Ms Truss.
Two-thirds (66 per cent) of the country say the party chose the wrong leader, according to the poll, of 1,675 voters.
One particular area of concern among Tory MPs from YouGov’s latest poll will be the figures for 2019 Conservative voters.
Among those who voted for the Conservatives at the last election, under the leadership of Boris Johnson, 62 per cent said that party members had made the wrong choice, according to The Times.
Worryingly for the party, many said they would now vote Labour or another party other than the Conservatives at the next general election.
According to the latest polls, Labour hold a 28-point lead over the Tories, with Sir Keir Starmer’s party currently on 51 per cent compared to the Conservatives on 23 per cent.
Mr Kwarteng was given his marching orders after being hauled back to Downing Street from a US summit, with the PM facing a potentially terminal Tory rebellion.
Former foreign secretary and two-time failed leadership contender Mr Hunt is making a shock return as a ‘safe pair of hands’ to take over No11.
In a letter, Mr Kwarteng confirmed he had been ‘asked to stand aside’ rather than quitting – and suggested he still believes that the tax-cuts should go ahead. After being fired, the MP left No10 by the front door, smiling and waving to waiting media.
Ms Truss replied by praising their ‘friendship’ and ‘shared vision’, saying he had put the ‘national interest first’ by falling on his sword. Despite Mr Kwarteng leaving no doubt that he had been given the bullet, she said: ‘I deeply respect the decision you have taken today.’
One bewildered Cabinet source told MailOnline of the prospect of Mr Hunt taking over at No11: ‘I think my rationality barometer is broken.’
Chris Philp has also been ousted from Treasury Chief Secretary, after a series of gaffes including tweeting that the Pound was strengthening during Mr Kwarteng’s mini-Budget speech – minutes before it crashed. He is swapping jobs with Paymaster General Edward Argar.
Mr Kwarteng becomes the the second shortest-serving chancellor in modern British politics, only behind Iain Macleod – whose career was ended by his death after 30 days in office in 1970.
Since 2019, the UK has had four chancellors, including Nadhim Zahawi who served the third shortest tenure with 62 days during a short-lived reshuffle under Boris Johnson, and Sajid Javid who served 204 days – the fourth shortest tenure on record.
Ms Truss made scrapping plans to up the corporation tax rate from 19 per cent to 25 per cent – at a cost of £18billion – a central part of her leadership campaign and it was unveiled as a policy three weeks ago as a major growth lever.
In his letter, Mr Kwarteng wrote: ‘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.’
The Chancellor arrived back in London this morning after abandoning a trip to the IMF in Washington to hold crisis talks with the PM.
The markets have been volatile and the Conservative Party febrile since his announced tax cuts paid for by borrowing last month.
They have already had to announce a U-turn and reinstate the 45p income tax rate for the UK’s richest people, following a revolt.
Asked about the prospect of another humiliating U-turn, the Chancellor said yesterday: ‘Let’s see.’
Yields on gilts, UK Government bonds, surged amid a sell-off after Kwarteng announced unfunded tax-cutting plans in the mini-budget last month and lifted again earlier this week.
On the opening of the markets, yields on UK 30-year gilts fell back by 1.6 per cent to 4.47 per cent, while 10-year gilt yields moved 1.8 per cent lower to 4.11 per cent.
But in a negative sign for the government, the yields rose again this afternoon after the PM’s press conference.
A former Cabinet minister said the situation ‘could move quite fast’ but there would need to be ‘a lot of pressure’ to get Ms Truss out. Under existing party rules, she Truss cannot face a formal leadership challenge until September next year.
‘I am not talking up anyone. I am talking down Liz,’ the MP said. ‘What about Boris? Weirder things are happening right now before our eyes. I would not rule it out at the moment.’
Senior Tory backbencher Sir Roger Gale questioned why Liz Truss dismissed Kwasi Kwarteng for implementing her economic policies.
The North Thanet MP tweeted: ‘Hard to understand why the Prime Minister has sacked her Chancellor – a good man – for promoting the policies upon which she was elected.
‘Good, though, that in Jeremy Hunt there will be an experienced pair of hands on the financial tiller.’
Labour demanded that Ms Truss go back to the drawing board on the mini-Budget but, unlike the Lib Dems and SNP, stopped short of calling for a snap election.
Senior Tory Sir Bernard Jenkin urged his colleagues to stop ‘rash talk of ditching’ Liz Truss as he called for ‘calm’.
He tweeted: ‘The appointment of @Jeremy_Hunt as Chancellor is a wise choice. He is trusted and respected across Parliament.
‘We must now be calm. Rash talk of ditching the PM, or calls for a general election, will not calm the financial markets.’
Earlier, former minister Nadine Dorries, who backed Truss for the leadership, accused her opponents of ‘a plot not to remove a PM but to overturn democracy’.
Trade Minister Greg Hands insisted there are ‘absolutely no plans to change anything’ in the mini-budget, including on corporation tax.
The trade minister told LBC Radio: ‘The Prime Minister and the Chancellor are absolutely determined to stick to the growth plan, to stick to the changes they outlined.’
Some MPs are hoping Commons Leader Penny Mordaunt (pictured left) and former Chancellor Rishi Sunak (right, with his wife) could make a ‘dream ticket’ to replace the Prime Minister
Jeremy Hunt backed CUT in corporation tax to just 15p in the Pound
New Chancellor Jeremy Hunt is expected to oversee a hike in corporation tax from 19p to 25p in April.
But the Cabinet minister previously backed cutting the levy to just 15 per cent.
Speaking to Sky during his short leadership campaign in July, Mr Hunt warned against ‘unfunded tax cuts’.
But he added: ‘Corporation Tax is the tax that matters most to businesses and defines whether we are a pro-enterprise economy. And we are scheduled to increase those Corporation Taxes and be higher than Japan, America, France or Germany.
‘I want to cut it to 15 per cent, the lowest we are allowed to cut it to, according to international agreements, because I want to send a signal that I want people to be entrepreneurs, to do what I did.
Asked how much that would cost in lost revenue he said: ‘I can tell you that we can afford to do it within the fiscal rules that we have, over a five-year period, so that means that debt has to continue to fall as a proportion of GDP and one of the reasons for that is because Corporation Tax, according to the Treasury’s own figures, you get half the money back because of increased business activity and it is not the most sexy of cuts but it just matters in terms of getting our economy moving and that’s what entrepreneurs like me feel very strongly about.’
Former home secretary Priti Patel last night become the latest high-profile Tory MP to suggest the Government could be forced into a further U-turn.
In an interview with Sky News, she said it was ‘vital’ and ‘imperative’ that the Truss administration now stick to the premise of the 2019 manifesto.
‘There is an irony to this,’ Ms Patel said. ‘In that market forces will probably dictate some of these changes now.
‘The market is going to dictate this, primarily because we want to see stability. Stability is absolutely crucial, for everyone to carry on living their lives, for the institutions to function, but actually for the British people to have the stability that they need in their lives as well.
‘And by that, as well, I mean mortgages, interest rates and all those crucial, crucial levers.’
Another senior Tory MP has joined calls for the Government to reverse course on the mini-budget.
Alicia Kearns, who has just been elected as the new chairwoman of the Foreign Affairs Committee, suggested the Government’s tax cuts should be scrapped to calm the markets.
She was asked on LBC’s Tonight With Andrew Marr whether she would like to see the tax cuts reversed.
‘Do I think we should be borrowing en masse where our children have to pay this back for decades to come? No, I don’t,’ she said.
Pressed by Marr, she stressed that sometimes Governments need to take ‘extraordinary steps’.
‘But clearly, in the approach and the manner in which this has been done, that is the issue. Because the markets are not woke, the markets are not left. The fact they are not lefty, anti-government, the fact they have been spooked, is something that should be taken incredibly seriously. And often it is about the manner, and the fact is we govern only with the support of the people, and we are not bringing them with us currently.
‘We all want Liz Truss to succeed in that the country needs her to succeed. And it is about recognising that actually, sometimes baby steps can result in more meaningful and embraced change than perhaps a bonfire.’
It comes as panicked Tory MPs engaged in fevered discussions about whether to try to remove Ms Truss barely a month into her premiership – and who might replace her.
Party grandees have been talking of replacing Ms Truss with a unity ticket of Mr Sunak and Ms Mordaunt – who were second and third in the leadership contest.
Some 20 to 30 senior MPs, including former ministers, are attempting to form a ‘council of elders’ to tell the PM to quit, The Times reported.
One MP said: ‘Rishi’s people, Penny’s people and the sensible Truss supporters who realise she’s a disaster need to sit down together and work out who the unity candidate is.
‘It’s either Rishi as prime minister with Penny as his deputy and foreign secretary, or Penny as prime minister with Rishi as chancellor.’
To avoid more ‘blue on blue’ attacks, one of the two would be selected and enter No 10 in a coronation-style affair.
But Trade minister Greg Hands said he does not recognise reports that senior Tories are plotting the possibility of replacing Liz Truss with a joint ticket of Rishi Sunak and Penny Mordaunt.
The trade minister told Sky News: ‘I don’t recognise that story at all.
‘I was a supporter of Rishi Sunak; somehow I’d be very surprised at that story. I was talking only yesterday with Penny Mordaunt. I don’t recognise that story at all.’
Mr Hands, who was a prominent backer of Ms Truss’s Tory leadership rival Mr Sunak, was asked if the markets would have more confidence if Mr Sunak was in No 10.
He said: ‘Rishi Sunak did not win the leadership contest, Liz Truss did win the leadership contest. I am dealing with the situation that we are in’.
Mr Kwarteng had been set to unveil the Government’s ‘medium-term fiscal plan’ on October 31, including plans for shoring up Britain’s battered public finances.
Three days later the Bank of England is due to announce a major hike in interest rates, bringing more pain for millions of homeowners.
Ms Truss had ruled out major cuts in public spending to help fill a black hole in the public finances estimated by some forecasters to top £60billion.
The PM was already forced to abandon the abolition of the 45p top tax rate following a backbench Tory revolt.
From ‘ideological soulmates’ to a shock sacking after just 39 days: How Liz Truss came to fire Kwasi Kwarteng – her long-time ally and neighbour from the same south London street – in bid to save her premiership
Liz Truss has sacked her ‘ideological soulmate’ Kwasi Kwarteng after just 39 days as she battles to save her premiership.
It comes just weeks after the duo were hailed for enjoying the closest relationship between a Prime Minister and Chancellor since David Cameron and George Osborne.
Mr Kwarteng has now become the second shortest-serving Chancellor in modern British political history, after Iain Macleod who died 30 days after taking the job in 1970.
When Ms Truss entered No10 last month and Mr Kwarteng moved into No11, there were expectations that frequent tensions between No10 and the Treasury – a feature of British politics in recent years – would end.
A sign of their close relationship was the fact they had become not just neighbours in Downing Street, but were also neighbours in the same leafy south London borough.
Mr Kwarteng moved to the same Greenwich street as Ms Truss earlier this year.
Their friendship dates back to 2010 when they first entered Parliament together following that year’s general election.
Mr Kwarteng was a member of the Free Enterprise group of Tory MPs that Ms Truss founded in 2011, which aimed to ‘free individuals to create, innovate and take risks’.
Kwasi Kwarteng has become the second shortest-serving Chancellor in history after being sacked by Liz Truss
One friend of the pair previously described the ‘slight social misfits’ and ‘amiable geeks’ as being like ‘Batman and Robin’
In 2012, Ms Truss and Mr Kwarteng – along with Priti Patel, Dominic Raab and Chris Skidmore – co-authored a book titled ‘Britannia Unchained’ that has since been viewed as a blueprint for the PM’s vision for her premiership.
The book bemoaned the ‘legacy of a bloated state, high taxes and excessive regulation threatens to take the drive out of the British economy’.
There was a slight fracture in the pair’s joint political viewpoint during the EU referendum in 2016, when Mr Kwarteng backed Brexit but Ms Truss campaigned fiercely for Remain.
But they were soon aligned again as Cabinet ministers in Boris Johnson’s Government.
Both were opposed to former Chancellor Rishi Sunak’s hike in National Insurance, as well as the decision to slap a windfall tax on energy firms’ profits.
Mr Kwarteng was said to have been among a small group of Tory MPs sat around Ms Truss’s kitchen table when they plotted her leadership campaign after Mr Johnson’s resignation in July.
When Ms Truss assumed the position as frontrunner in this summer’s Conservative contest, one friend of the pair described the ‘slight social misfits’ and ‘amiable geeks’ as being like ‘Batman and Robin’.
Mr Kwarteng was said to have been among a small group of Tory MPs sat around Ms Truss’s kitchen table when they plotted her leadership campaign this summer
Ms Truss and Mr Kwarteng announced a U-turn on scrapping the 45p top rate of tax during this month’s Conservative Party conference in Birmingham
Ms Truss was said to have been intimately involved as Mr Kwarteng and his Treasury officials put together the mini-Budget he unveiled on 23 September
Mr Kwarteng was soon widely-tipped to become Ms Truss’s Chancellor if she entered No10 – a prediction that was proved right when she beat Mr Sunak to become PM on September 5.
Ms Truss was said to have been intimately involved as Mr Kwarteng and his Treasury officials put together the mini-Budget they unveiled on September 23.
The package delivered a number of Ms Truss’s leadership campaign pledges – including a cut to National Insurance and the scrapping of a planned hike in corporation tax.
But Mr Kwarteng and Ms Truss – often referred to as ‘ideological soulmates’ – also went further than she had outlined during the Tory leadership contest.
They announced of a scrapping of the top rate of income tax, the bringing forward of 1p cut in the basic rate of income tax, the removal of the bankers’ bonus cap and the slashing of stamp duty.
Widespread surprise at the size of the tax-cutting agenda the pair had embarked upon – and fears over an increase in borrowing to fund the measures – spooked financial markets and Tory MPs.
As pressure grew, Ms Truss and Mr Kwarteng announced a U-turn on scrapping the 45p top rate of tax during this month’s Conservative Party conference in Birmingham.
But their action was not enough to settle the financial turmoil – or mutinous Tory MPs – which has now forced the PM to sack her Chancellor as she battles to remain in No10.
In a letter to Ms Truss, Mr Kwarteng confirmed he had been asked to ‘stand aside’ by the PM.
He wrote: ‘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.’
But the departing Mr Kwarteng defiantly stood by his low-tax ethos, adding: ‘For too long this country has been dogged by low growth rates and high taxation – that must change if this country is to succeed.’
In her reply to Mr Kwarteng, the PM also referred to the man she had just sacked as a ‘long-standing friend and colleague’.
‘I am deeply sorry to lose you from the Government,’ Ms Truss wrote.
‘We share the same vision for our country and the same firm conviction to go for growth.’
She added: ‘Thank you for your service to this country and your huge friendship and support.
‘I have no doubt you will continue to make a major contribution to public life in the years ahead.’
Liz Truss calls up Hunt: PM turns to experienced Cabinet operator – the longest-serving health secretary in history who twice stood for Tory leader – to take charge of Treasury months after he championed slashing tax even LOWER than Kwasi Kwarteng
Liz Truss has turned to experienced Cabinet minister Jeremy Hunt to take charge of the Treasury after she dramatically sacked Kwasi Kwarteng.
The Prime Minister has appointed the 55-year-old as her new Chancellor as she battles to save her premiership with efforts to soothe mutinous Tory MPs and volatile financial markets.
The appointment marks a dramatic return to Government for Mr Hunt, who appeared to admit just three months ago that his time in frontline politics was at an end.
In July, when he dropped out this year’s Tory leadership contest that was ultimately won by Ms Truss, Mr Hunt said it had ‘become obvious to me you only get one big shot at this’.
He went on to back Ms Truss’s rival Rishi Sunak after being knocked out the race himself.
Mr Hunt, a multi-millionaire married father of three, had previously stood to be Conservative leader in 2019, when he was defeated in a run-off by Boris Johnson.
But Mr Hunt is now back at the heart of Government where he has previously served in one of the ‘great offices of state’ as foreign secretary.
He is also the longest-serving health secretary in history following his near-six year spell in the role.
When he enters the Treasury, Mr Hunt will face immediate questions over the economic agenda he will oversee.
During his second failed bid to become PM this summer, Mr Hunt had championed cutting corporation tax to 15 per cent.
This is below the 19 per cent rate that his sacked predecessor Mr Kwarteng had been aiming for – which is viewed as having played a part in last month’s mini-Budget meltdown.
Liz Truss has turned to experienced Cabinet minister Jeremy Hunt, seen arriving at his home in central London after being appointed Chancellor today, to take charge of the Treasury
Mr Hunt with his wife Lucia Guo in central London in 2019. On a visit to China the year before, the Chancellor mistakenly referred to his Chinese spouse as ‘Japanese’
After dropping out the contest himself, Mr Hunt backed Ms Truss’s rival Rishi Sunak for the Tory leadership this summer
After entering Parliament as MP for South West Surrey in 2005, Mr Hunt became a key ally of David Cameron after supporting his Tory leadership bid.
He served in a series of shadow ministerial roles as one of the leading ‘Cameroons’ hoping to return the Conservatives to power.
Under the coalition government that followed the 2010 general election, Mr Hunt took on the role of culture secretary during which he helped oversee the 2012 Olympics.
He then moved to the Department of Health and oversaw the running of the NHS for nearly six years to become the longest-serving health secretary in British history.
His spell in charge saw a major battle with junior doctors – after they went on strike over changes to their contracts – which saw his popularity with voters plummet.
But, prior to leaving the health brief, Mr Hunt managed to secure a £20billion boost to the NHS budget as a 70th ‘birthday present’ for the health service.
There have since been questions about Mr Hunt’s record as health secretary in the wake of the Covid crisis, including over how well-prepared he had left the NHS for a pandemic.
Theresa May, the then prime minister, shuffled Mr Hunt to foreign secretary to replace Mr Johnson following his resignation in protest over Brexit policy in 2018.
It meant that, as well as Mrs May and the then chancellor Philip Hammond, the top of Government was dominated by figures who had backed Remain at the EU referendum.
Mr Hunt visits King’s College Hospital in London in 2012 as health secretary. He served the role for nearly six years – the longest of any politician in history
Back in 2012, as culture secretary he narrowly avoids injuring bystanders when a bell he was ringing flew off its handle at an Olympics celebration
When the Brexit chaos at Westminster led to Mrs May’s resignation, Mr Hunt announced he would stand for the Tory leadership but was a distant runner-up to winner Mr Johnson.
He refused to serve in Mr Johnson’s Government after rejecting a demotion to defence secretary, although Mr Hunt let it be known he would have been happy to have carried on as foreign secretary.
Until today, he had since spent his time in Parliament on the back benches of the House of Commons and took on the chairmanship of the health and social care Committee.
He had used that role to offer himself as a constructive critic of the Government’s handling of the Covid crisis.
Despite his long experience in frontline politics, Mr Hunt has been prone to a gaffe such as in 2018 when – on a visit to China – he referred to his Chinese wife Lucia Guo as ‘Japanese’.
Back in 2012, he narrowly avoided injuring bystanders when a bell he was ringing flew off its handle at an Olympics celebration.
Broadcasters have also been known to struggle with Mr Hunt’s surname, with a number having inadvertently referred to him with a C-word expletive.
‘Well THAT was a car crash’: Social media likens Liz Truss to Forrest Gump as she storms out of press conference – after exploding with memes after Kwasi Kwarteng was sacked
Twitter users have likened Liz Truss to Forrest Gump after she appeared to storm out of her own ‘car crash’ press conference, which lasted for eight minutes and 21 seconds.
The Prime Minister took to the podium this afternoon to say it was ‘clear’ that parts of the mini-budget, announced by the now departed Chancellor Kwasi Kwarteng last month, went ‘further and faster’ than expected.
She said she would reverse her plan to scrap an increase in corporation tax, in a bid to quell the volatile markets.
But Truss was next in line to face the wrath of the Twittersphere, which had already exploded with memes about the former Chancellor Kwasi Kwarteng – who was sacked earlier today.
Now turning their sights on the PM, who only took four questions from journalists after her U-turn announcement in a highly unusual move, some less-than-impressed users joked she was ‘as effective as a chocolate teapot’.
Twitter was awash with people’s takes on Liz Truss’ press conference, which lasted eight minutes and 21 seconds
The Daily Star has set up a livestream to see whether a lettuce or Liz Truss will ‘last longer’
People were quick to make a jibe at the Prime Minister’s quick exit, with one comparing her to Homer Simpson disappearing into a bush.
Meanwhile, the Daily Star has set up a livestream of a picture of Liz Truss next to a lettuce, in a bid to find out which will last longer.
The paper said that bookies have given odds of 6-1 for the Prime Minister to be replaced faster than it takes a lettuce to decay, around 35 days.
The political drama unfolded today as the former Chancellor cut short a trip to the US and flew back to London, after being summoned by Liz Truss following concerns over his mini-budget announcement on September 23.
Mr Kwarteng arrived at No 10 around noon today and accepted the Prime Minister’s request to stand down less than half an hour later, before leaving through the front door of No 11 with a smile on his face.
Around 30 minutes later it was announced that Jeremy Hunt would be taking over the role.
Following the news, Twitter went wild with memes as some joked that they had ‘cheese in their fridge that had lasted longer’ than Kwarteng’s tenure, which lasted 38 days.
It comes as today, the former Chancellor cut short a trip to the US and flew back to London, after being summoned by Liz Truss following concerns over his mini-budget announcement on September 23.
Mr Kwarteng arrived at No 10 around noon today and accepted the Prime Minister’s request to stand down less than half an hour later, before leaving through the front door of No 11 with a smile on his face.
Around 30 minutes later it was announced that Jeremy Hunt would be taking over the role.
Following the news, Twitter went wild with memes as some joked that they had ‘cheese in their fridge that had lasted longer’ than Kwarteng’s tenure, which lasted 38 days.
Others, including ‘right-wing’ comedian Joe Lycett, said that he had become a member of the ‘anti-growth coalition’ – a phrase Truss has used to describe detractors of her economic policy.
Kwarteng flew back early from Washington today to have ‘urgent talks’ with the Prime Minister, before suggestions came out that he is facing the sack.
Multiple pictures of his flight path were shared with suggestions that his plane was doing a U-turn, mere hours before the Prime Minister is expected to announce another rowing back on elements of the mini-budget.
One Twitter user responded to the news of his sacking by labelling Truss and Kwarteng ‘Clueless’.
They posted a mock-up of the Chancellor and Liz Truss as Cher and Dionne in 90s chick flick by the same name, writing ‘Kwasi Kwarteng dashes back from the US to be sacked by Liz Truss?’.
Others could not help but to compare it to Nadhim Zahawi’s short-lived career as Chancellor in the final days of Boris Johnson’s government.
Kwarteng’s departure after just 38 days makes him the second shortest-serving Chancellor in modern British politics.
Zahawi served the third shortest tenure with 62 days during a short-lived reshuffle under Boris Johnson.
Another post shows a picture of Kwarteng appearing on University Challenge, captioned with ‘”Who was the shortest-serving post-war chancellor not to die in office?” BZZZZTTT “Kwarteng, Cambridge” “Correct”‘.
Others on Twitter called him and Prime Minister Liz Truss ‘toast’ and questioned his mathematics abilities after the mini-budget.
One meme showed a photoshopped Ladybird children’s book entitled ‘Counting with Kwasi’ with a picture of a child writing on a chalk board ‘4 – 5 = 9’.
A cartoon posted by one Tweeter shows a ‘£0’ bank note with Truss and Kwarteng on the front.
The Prime Minister will hold a press conference at 2pm in which she is widely tipped to bow to political and economic pressure to increase corporation tax, abandoning a major policy in the Chancellor’s economic plans.
In a letter, Mr Kwarteng confirmed he had been ‘asked to stand aside’ rather than quitting – and suggested he still believes that the tax-cuts should go ahead.
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