Kwasi Kwarteng is no longer serving as the UK’s Chancellor of the Exchequer after a meeting with Prime Minister Liz Truss on Friday, a development that British broadcaster BBC reported but which has not yet received formal government confirmation.
The exit appeared to take shape at Downing Street, the prime minister’s official residence and the center of government, where discussions with Truss signaled a transition in the nation’s financial leadership. The BBC notes that it remains unclear whether the departure was compelled by political pressure over a controversial growth plan or if there was an agreed exit arrangement. The sequence of events followed Kwarteng’s presentation of a new economic package on September 23.
Only 38 days into the role, the former chancellor’s tenure has been defined largely by a radical tax-cut agenda that provoked volatility in global markets. Investors and traders watched closely as the plan was framed as a decisive shift in fiscal policy. As the day progressed, Truss was anticipated to address the country with a press conference around 2:00 PM local time (1:00 PM GMT) to outline notable changes to the government’s tax strategy and fiscal stance.
Media anticipation centered on who would replace Kwarteng in the short term and how the cabinet would recalibrate the government’s economic priorities. Analysts from various outlets speculated about imminent shifts to the budget framework and potential realignments within the financial team. One area sparking particular interest in political coverage is the proposed corporate tax rate, which had previously been flagged as rising in the coming year; critics warned that such a move could conflict with the prime minister’s stated pledge not to increase business taxes, while supporters argued that the reform could fund public services and investment.
Throughout the turmoil surrounding the economic measures, Kwarteng publicly stated that he had no intention of resigning. Yet, market reactions and political pressure created a backdrop of uncertainty as the Bank of England intervened to stabilize certain debt markets and ease a potential pension liquidity crunch. The broader question then became how today’s announcements would influence sterling and the cost of long-term borrowing versus the dollar, a dynamic closely watched by financial observers in the United Kingdom and beyond.
With the calendar turning and the prime minister facing sustained scrutiny from both opposition voices and her Conservative allies, the administration faced a critical moment of decision on policy direction. Truss’s leadership was tested by the twin pressures of delivering growth while maintaining financial credibility in the eyes of markets, investors, and the public. The unfolding developments signaled a broader intent to recalibrate fiscal strategy, potentially reshaping the path for tax policy, public spending, and growth initiatives in the months ahead.
The situation continued to evolve as government insiders and observers weighed the possible implications for economic management, messaging to businesses, and the overall tone of fiscal governance. The question of responsibility, timing, and the precise nature of any forthcoming changes remained central to discussions among political analysts and commentators, who noted that the stability of the government would hinge on clear, credible steps to restore confidence in the economy and to articulate a coherent plan for sustainable growth.