Kwasi Kwarteng has disclosed that he cautioned Liz Truss against going too far and too quickly with her tax-cutting ambition, telling her to’slow down’ if she was to retain her position.
The former chancellor stated that he advised the then-prime minister that it was “crazy” to fire him days before she herself left No. 10.
In his first interview since being fired last month, Mr. Kwarteng lauded Rishi Sunak as a “very credible” prime minister, but cautioned him about anticipated tax increases in the Autumn Statement next week.
He stated on TalkTV, “We attempted to achieve too much too quickly.” Too much too quickly. I believe the strategic objective was correct. But I believe we should have taken a somewhat more measured approach.
He stated that he carried “some responsibility” for the schedule of the mini-budget, but that Ms. Truss “really believed that we needed to move quickly.” But I believe everything happened too quickly,’ he remarked.
Even after the mini-budget, we moved at a rapid pace. And I said, ‘You know, we really ought to calm down!’ She stated, “Well, I only have two years,” to which I replied, “You will only have two months if you continue in this manner.” And I’m afraid that’s exactly what occurred’
Liz Truss fired Kwasi Kwarteng as chancellor days before she was forced to quit. Mr. Kwarteng stated that he informed her it was “too much, too quickly.”
Mr. Kwarteng acknowledged that the couple attempted to do “too much, too quickly” on their disputed mini-budget.
Her motivation was 100 percent correct, but I believe we needed a more effective strategy to accomplish what she desired. He lauded Miss Truss’s ‘dynamism’ and eagerness to ‘strike the ground running,’ but said that his concerns that the government required a more’measured approach’ were disregarded.
After his catastrophic September mini-Budget, Mr. Kwarteng told Ms. Truss that she needed to “slow down” future reforms, but she persisted on continuing because she had only “two years” left to push them through.
Mr. Kwarteng, a friend of Ms. Truss, stated that he learnt of his dismissal via Twitter. He continued: ‘I arrived at Downing Street. I accessed the Cabinet Room.
“The Prime Minister appeared disturbed and emotional.” I stated, “You have two months if you continue in this manner.”
He encouraged Mr. Sunak and his Chancellor, Jeremy Hunt, to refrain from blaming him and Ms. Truss for the current economic crisis. He asserted, “Liz Truss’s 44 days in office were not responsible for the national debt.”
Mr. Kwarteng unveiled the largest package of tax cuts in fifty years on September 23.
Using more than £70 billion in extra borrowing, he proposed a plan that includes abolition of the top income tax rate for the richest earners and removal of the bonus cap for bankers, in addition to an enormously expensive energy support package.
The mini-budget caused instability on the financial markets, causing the pound to plummet, necessitating intervention by the Bank of England, and driving up mortgage rates.
Two days later, Mr. Kwarteng signaled that additional tax cuts were forthcoming, further unsettling markets.
Mr. Kwarteng was frequently asked if he wanted to apologize to those who would incur extra charges due to re-mortgaging. He refused, stating, “I don’t want to relive the past.”
He said, “I truly feel sad for those who are going through this challenging re-mortgaging period.”
“I’m not going to wash my hands of what we did; I believe the strategic aims were correct, but, as stated, there was no real tactical strategy and no real schedule for the delivery and implementation, and I believe we should have done that.”
The former prime minister stated that he learnt of his dismissal via a tweet while en route to a meeting with Ms. Truss in Downing Street.
“I cannot recall if she was actually crying, but she was extremely emotional,” he said.
He described his thoughts at that point by stating, “This is insane.” Prime ministers do not remove chancellors from office.
I believe I told her at the time, “This will take three or four weeks.”
“I had no idea that it would only last six days.”
On October 14, the Chancellor returned to Downing Street after leaving the IMF session in Washington early. He was subsequently fired by Ms. Truss.
After the mini budget, the value of the pound against the US dollar plunged to record lows. The Bank of England was required to support pension funds.
Mr. Kwarteng remarked, “She cannot fire me for merely fulfilling her campaign platform.” Moreover, we had a dialogue.
And I believe it was widely believed that she would survive if I accepted the blame for that.
Mr. Kwarteng asserted that he and Ms. Truss were still “friends” despite the fact that he had not returned her call from several days prior.
Ms. Truss ultimately resigned after only 44 days in office, as her economic policies were quickly dismantled by the new chancellor, Jeremy Hunt, and her successor in No. 10, Rishi Sunak.
Mr. Kwarteng contended that Mr. Sunak and Mr. Hunt cannot blame Ms. Truss’s administration for the enormous hole in the nation’s budget.
He stated, “The only thing they could reasonably criticize us for is the decline in interest rates and gilt yields.”
Mr. Kwarteng also refused to support anticipated tax increases in his successor’s fall budget next week.
He stated, “You will not increase the economy or encourage economic growth by increasing our taxes.”