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Kwarteng is gone - is that enough to appease the herd?

Kwasi Kwarteng leaving Downing Street this afternoon
Kwasi Kwarteng leaving Downing Street this afternoon

"As we've seen at Westminster, the herd is powerful and when the herd moves, it moves".

Boris Johnson's wry comment last July when forced from office seem prophetic now.

Especially for the now former chancellor of the exchequer Kwasi Kwarteng, who has been replaced by Jeremy Hunt.

Some ask why he should bear the responsibility for the financial turmoil when British Prime Minister Liz Truss was joint architect of the new economic plan.

Indeed, the idea of low tax and light regulation without public spending cuts or increased borrowing as a way of producing growth was dubbed Trussonomics.

However, the prime minister did point out that the most contentious aspect of the mini-budget - the cut in the top rate of tax for high earners - was the chancellor's idea.

Even two of Ms Truss's closest economic gurus - Gerard Lyons and Julian Jessop - baulked at that announcement.

Then it turned out that Mr Kwarteng went to a champagne reception with hedge fund managers just after announcing the mini-budget that Friday.

His announcement had caused a fall in sterling that day, which earned huge profits for his hosts.

Then, despite the market reaction, he doubled down on Sunday by announcing there would be more tax cuts.

This further alarmed the markets and the Bank of England was forced to intervene.

So, there is grounds for the prime minister to put distance between herself and her chancellor.

However, will that be enough to appease the herd?


Read: Truss U-turns on corporation tax after sacking Kwarteng