United Kingdom Chancellor Kwasi Kwarteng is only a few weeks into the job but his position is under severe threat as it emerged that he attended a private champagne reception hours after delivering his mini-budget. The mini-budget was seen as a ‘reverse Robin Hood’ as it helps the rich get richer and everybody else suffering financially.
Kwarteng mixed with hedge fund managers who may have profiteered from the economic crash, according to a report in the Sunday Times.
The evening gathering on September 23 took place in Chelsea at the home of Andrew Law, a financier and senior party donor where Kwarteng is said to have shared ‘insights’ over planned expenditure cuts. Law has an estimated $800 million fortune and since 2004 has donated $4m to the Tories.
He admitted to shorting the pound in recent years, which has helped him make a profit from the pound’s recent decline in value. The Liberal Democrats and Labour Party have called for an inquiry amid questions over Kwarteng’s political judgement and whether the event affected his decision to hint at further tax cuts days later.
The pound hit a new low against the US dollar following the mini-Budget, dropping to $1.0327 before recovering to above $1.08.
Guests reportedly drank wine, champagne and cocktails and according to a source in the report the mood was “very, very positive”.
Following the reception, the Chancellor was allegedly dubbed a “useful idiot” by several prominent hedge fund bosses. The reception had 30 guests, including stockbrokers, corporate financiers, merchant bankers and investors. Representatives from the property, hospitality, healthcare and education sectors were also there.
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