Two interesting take-aways: How will MPs vote on the mini budget and will Kwarteng survive the financial turmoil?
Quote:
Tory MPs question Kwarteng’s future as market turmoil continues
Some say PM must jettison chancellor or risk further backlash
Tory MPs were despairing after another day of market chaos, with the Bank of England announcing plans to buy government bonds, effectively to defend the economy from Kwarteng’s own policy.
Some claimed that Liz Truss, prime minister, is trying to distance herself from Kwarteng’s economic strategy, even though she was instrumental in devising the plan of debt-funded tax cuts worth £45bn.
Truss has not made a public statement since the markets delivered a vicious verdict on her government’s economic plan released on Friday. There have been tensions between her and Kwarteng on how to respond to the tumult.
One former cabinet minister told the Financial Times: “I think he’s dead but in the Tory party death can take many forms. It can take a long time. There’s a political vacuum.”
Another Tory MP, a member of the government, said: “Liz has a pretty quick choice to make: either she bullets her chancellor and changes course or she could lose her premiership within a month.
“She will struggle to get any legislation through parliament unless she changes course because we won’t vote for it. We won’t ever get to vote on this package because the markets will destroy it first.”
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https://www.ft.com/content/a46e53bb-...e-05f71d2e57ef