Political Currency Kwasi Kwarteng on the Liz Truss meltdown, getting sacked and Kemi Badenoch’s future
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Aug 7, 2025 Kwasi Kwarteng, the former Chancellor of the Exchequer under Liz Truss, shares candid insights about the disastrous mini-budget and his unexpected sacking. He discusses the Bank of England’s critical intervention and calls for unity within the Conservative Party. Kwarteng emphasizes lessons learned from political setbacks while also reminiscing about the art of speechwriting. He reflects on the importance of effective communication in politics, showcasing how memorable speeches have the power to shape political narratives.
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Mini-Budget's Intellectual Failure
- The mini-budget failed due to mission creep and ignoring spending cuts alongside tax cuts.
- Kwarteng admits the main intellectual failing was not combining expansionary measures with spending restraint.
Bank of England's Support Ended Crisis
- Kwasi Kwarteng recalls the Bank of England's time-limited support to pension funds as the moment "that killed the government."
- The announcement ending support abruptly destabilized markets and led directly to his dismissal.
Fiscal Constraints on Welfare Reform
- Rachel Reeves faces parliamentary constraints limiting welfare reforms and spending cuts.
- Without growth, raising taxes is the only option but risks further economic disincentives.
