The Scottish Mail on Sunday

Kwasi was ‘bounced’ into 45p tax fiasco by Truss

- By Glen Owen POLITICAL EDITOR

KWASI KWARTENG argued against the Government’s disastrous plan to cut the top 45p rate of tax but was over-ruled by Liz Truss, sources have told The Mail on Sunday.

The former Chancellor was sacked by the Prime Minister on Friday, after Ms Truss told him that he had to go in order to restore market confidence.

‘They are coming for me,’ Ms Truss said to Mr Kwarteng, referring to the plotters who want to oust the Prime Minister in the wake of the turmoil caused by his mini-budget.

Now sources have claimed that the most contentiou­s policy, the proposed cut in the top rate to 40p, was effectivel­y forced on Mr Kwarteng after he suggested to Ms Truss that it should be delayed until next year to avoid ‘doing too much at once’.

The PM is understood to have said: ‘No – let’s go for it.’

When this newspaper asked Mr Kwarteng after the mini-budget whether Ms Truss had ‘bounced’ him into the cut, he paused before responding: ‘I think we were agreed on that.’

Ms Truss had to execute a humiliatin­g U-turn on the plan at the Tory Party conference in Birmingham, and then also had to reverse her pledge to freeze corporatio­n tax on Friday to reassure the markets that the measures had been costed.

Commentato­rs have argued that if measures had been spaced out over a year the markets would not have been ‘spooked’ in the way that they were.

Mr Kwarteng was replaced by former Health Secretary Jeremy Hunt, a supporter of Rishi Sunak, who signalled that taxes would have to rise and public spending trimmed.

Separate sources have also claimed that Mr Kwarteng had agonised before deciding whether to back Ms Truss in the leadership contest earlier this year.

They say he confided that he was worried about her candidacy on the grounds that she was ‘a bit crazy’. Mr Kwarteng and Ms Truss have been close politicall­y for over a decade, and live close to each other in Greenwich, South East

London, where they have been seen ‘plotting’ in local pubs.

The sources say that Mr Kwarteng only endorsed Ms Truss after his preferred candidate, Ben Wallace, pulled out of the race – and only once Mr Kwarteng had been tacitly promised the Chancellor­ship. No 10 disputes this version of events, saying that Mr Kwarteng was an enthusiast­ic early supporter of Ms Truss.

An ally of Ms Truss said: ‘This was an immensely difficult decision for the PM, who told aides several times how painful she had found it to be. Liz and Kwasi had a warm meeting in the Cabinet Room and the PM felt deep personal sadness.’

The ally added that the Prime Minister

had ‘little choice’ but to sack Mr Kwarteng because the whips office and senior party officials, including Sir Graham Brady, the chairman of the 1922 Committee, all thought that the Chancellor had to lose his job in order to stabilise both the party and the economy.

Ms Truss delivered the news to Mr Kwarteng at a meeting on Friday after he flew back earlier than planned from talks at the Internatio­nal Monetary Fund in Washington. He learnt from social media that he was being dismissed as he was being driven to Downing Street.

He became the second shortestse­rving Chancellor, having served for just 38 days.

Despite this, Mr Kwarteng is understood to believe that Ms Truss has bought herself just ‘a few weeks’ by sacking him and reversing the budget because the ‘wagons are circling’.

Mr Kwarteng was not available for comment.

 ?? ?? CAUTION: Kwasi Kwarteng is said to have wanted to delay the top rate tax cut until next year
CAUTION: Kwasi Kwarteng is said to have wanted to delay the top rate tax cut until next year

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