Jeremy Hunt has been appointed as the new Chancellor, Downing Street has confirmed.
He previously served in the Cabinet as Secretary of State for Culture, Olympics, Media and Sport from 2010 to 2012, Secretary of State for Health and Social Care from 2012 to 2018, and Foreign Secretary from 2018 to 2019. He has been MP for South West Surrey since 2005.
Mr Kwarteng has paid the price for the chaos unleashed by his mini-budget one day after insisting he is “not going anywhere”.
It means Kwarteng goes down as the second-shortest serving chancellor post-war behind Iain Macleod who died in office.
Ms Truss will hold a press conference later today where she is expected to announce a mini budget U-turn.
— UK Prime Minister (@10DowningStreet) October 14, 2022
It is understood the Prime Minister’s key pledge to scrap the planned increase in corporation tax from 19% to 25% will be one of the measures cut, as Ms Truss seeks to save her embattled premiership.
One Government source told The Times that the corporation tax was likely to rise, but could still be less than the 25 per cent planned by the previous government.
Kwasi Kwarteng statement
— Kwasi Kwarteng (@KwasiKwarteng) October 14, 2022
In a statement posted to social media he said: “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.”
He added: 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 the country’s success and I wish you well.”