Kwasi Kwarteng has been confirmed as the UK’s new Chancellor of the Exchequer.

He joins Liz Truss’ new cabinet which features a raft of changes from the previous government, as he replaces Nadhim Zahawi, who only took the role after Rishi Sunak resigned in July.

Kwarteng became an MP in 2010, the same year as Truss, and previously worked as a columnist for the Daily Telegraph as well as a financial analyst at banks including JP Morgan, before getting involved in politics as chairman of the Bow Group think tank.

In the Conservative party and prior to his appointment as Chancellor, he had served as the Secretary of State for Business, Energy and Industrial Strategy since January 2021.

Kwarteng will now face immediate pressure to announce his plans for the economy to tackle record levels of inflation and help the millions of people around the UK who face soaring household energy bills.

Commenting on the appointment, tax and financial planning expert at Quilter, Shaun Moore, said that Kwarteng faces a “long and difficult path ahead” in his new role.

“The severity of Kwarteng’s oncoming challenge largely echoes that of former Chancellor Sunak’s battle with the COVID pandemic,” Moore commented.

“In its aftermath, coupled with the many other global issues from supply chain bottlenecks to the devastating ongoing war in Ukraine, the country now faces a rapidly slowing economy and rising interest rates. As such, questions will immediately be asked as to how and when help will come and, ultimately, how it will be paid for.”

Moore also stated that taxes will prove to be a “hot topic” in the coming weeks, after Truss had made several promises during her leadership campaign.

“Truss claimed she would lower taxes as opposed to providing handouts to support businesses and households with ever rising energy costs, as well as cancel the national insurance rise, scrap a planned increase in corporation tax and even potentially look to increase the marriage allowance which would allow couples to pool their personal tax allowance,” Moore added.

“Should he fulfil these promises, Kwarteng’s approach looks set to be expensive and substantially different to that of Sunak. While Sunak was keen to slow inflation, balance the books and limit borrowing by increasing taxes, Kwarteng has already faced some criticism for suggesting further borrowing could well be on the cards.

“What’s more, while Kwarteng and Truss claim tax cuts will stimulate growth, they are likely to face criticism if they are not seen to be doing enough to help the poorest in the country.”

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