Unrepentant Kwarteng urges Truss to continue with their free-market agenda
‘Your success is this country’s success and I wish you well’: Ex-chancellor promises support to PM
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Your support makes all the difference.An unrepentant Kwasi Kwarteng confirmed his departure as chancellor in a letter which defended his radical growth agenda – and insisted it was one which he shares with Liz Truss.
Mr Kwarteng signalled that he will not attempt to bring the prime minister down in response to his humiliating dismissal after just 38 days in the job, promising that he will support Ms Truss from the backbenches and telling her: “Your success is this country’s success and I wish you well.”
But he made clear that he expects her to press on with the agenda of free-market reforms which they had agreed in the hope it will deliver a boost to GDP growth and bring taxes down from a 70-year high.
There was no sign in the one-page letter of any admission from Mr Kwarteng that he was wrong to unveil the £45bn package of unfunded tax giveaways on 23 September, or any contrition for the political and financial chaos which followed.
His only reference to the turmoil – which saw a slump in the value of the pound, soaring borrowing costs and the Bank of England forced to launch a £65bn emergency scheme to prevent the collapse of pension funds – was to say that “the economic environment has changed rapidly since we set out the Growth Plan on 23 September”.
Mr Kwarteng made clear that his departure was entirely Ms Truss’s decision and there was no question of him having offered his resignation, writing: “You have asked me to stand aside as your Chancellor. I have accepted.”
And he left no doubt that he regards his package as the product of a joint agenda developed together with the prime minister, which he still believes was the right one.
He told the PM: “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.”
Mr Kwarteng’s letter signalled that he expects his successor to press ahead with a medium-term fiscal plan on 31 October to set out supply-side reforms to drive growth, as well as a tax-and-spend plan to balance the books.
“It is important now as we move forward to emphasise your government’s commitment to fiscal discipline,” he said.
“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.”
In a message which may reassure Ms Truss that he is not planning to take revenge, he concluded: “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 honor to serve as your first Chancellor.”
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