UK's Truss fires finance minister as economic plan in tatters

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British Prime Minister Liz Truss on Friday dismissed her finance minister, forcing Kwasi Kwarteng to carry the can for turmoil sparked by her right-wing economic platform as restive Conservatives plotted her own demise.

The chancellor of the exchequer was dismissed in person by Truss after he rushed back early from international meetings in Washington, and she was due later to hold her first Downing Street news conference.

Financial upheaval sparked by the new government's September 23 plan to slash taxes -- financed via billions in more borrowing -- has subsided somewhat since the Bank of England intervened in bond markets. Tony Travers, from the London School of Economics, told AFP Kwarteng had been made"the fall guy for the government's mistakes" but the sacking had not taken the pressure off Truss or calmed the Tories.

That programme now lies in tatters, and Truss's judgement is in question more than ever, after Sunak's warnings were entirely vindicated: higher borrowing to pay for tax cuts served only to terrify the markets and drive up borrowing costs for millions of Britons. Junior minister Greg Hands said"I don't recognise" multiple reports that senior Tory MPs were plotting to unseat Truss by installing a new leadership team under Sunak and Penny Mordaunt, who also ran to succeed Johnson.

 

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