Attorney General Angela Rayner has demanded an inquiry into Chancellor Kwasi Kwarteng’s alleged “budget day” cocktail party. Hours after delivering his mini-budget, the chancellor reportedly celebrated with a private champagne event.
A number of hedge fund managers who stand to profit from a decline in the value of the pound are said to have encouraged him to move forward with his plans.
Guests at the reception were reportedly given previews of upcoming government spending cuts by the Chancellor, as reported by The Times.
On the night of September 23, the event apparently took place at the Chelsea house of Andrew Law, a financier and donor to the Conservative Party.
On Twitter, Angela Rayner commented on the news: “This is quite a concerning conduct. Concerns regarding the Chancellor’s behaviour are extremely grave.
These allegations require further investigation into possible violations of the Ministerial Code.
Investor Selva Pankaj, banker Lord Leigh of Hurley, Conservative Party chairman Jake Berry, and stockbroker Howard Shore were among the estimated 30 guests at Mr Law’s party.
According to reports, other attendees included Hansa Capital senior partner William Salomon and Civitas Investment Management director Andrew Dawber.
Some attendees reportedly pushed Mr Kwartng to “double down” on his measures, as reported by The Times.
Plans by the government include lowering the standard income tax rate from 20% to 19% and doing away with the top rate of 45%.
The hike in the corporate tax rate from 19 to 25 per cent that was scheduled to take effect in 2019 will also be scrapped.
Meanwhile, homebuyers will get a reduction in stamp duty.
The statement caused the value of the pound to drop to an all-time low in relation to the US dollar. Meanwhile, interest rates on loans hit a record high on Monday morning, the highest level since August 2008.
The Bank of England stated earlier this week that it will begin buying bonds in an effort to stabilise what it called “dysfunctional markets” in response to a “material risk” to the UK economy.
This week, Ms Truss has been on a charm offensive, making personal appearances and giving speeches in an effort to reassure voters and members of parliament that the policies will be successful.
The Prime Minister’s continued tenure has been called into question by a number of lawmakers.
The Sun quotes a senior Conservative lawmaker as saying: “The administration has completely lost it. It’s like the building is on fire and just a handful of madmen are outside shouting that we must keep going.
For every one of her MPs who vote in favour of the Finance Bill, there are dozens who would vote against it, which means that forty votes would be needed to overturn her majority.
“I think we have lost the election,” one more lawmaker said.
An ally of Mr Sunak told the Sunday Times that the former Chancellor would rather give UK Prime Minister Liz Truss “all the room Angela Rayner needs to own the event” by being in Yorkshire.
The Sun reports that in an effort to quell the approaching mutiny, the Prime Minister and the Chancellor have been individually contacting members of parliament.
This follows this week’s unprecedented polling lead for the Labour Party.
Based on interviews with 1,712 people on September 28 and 29, YouGov found that Labour has a commanding 33-point advantage over the Conservatives.
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