Bankers’ champagne reception: Investigation needed into whether Kwarteng broke Ministerial Code

9 Oct 2022

EMBARGO: For Immediate Release

Bankers’ champagne reception: Lib Dems call for investigation into whether Kwarteng broke Ministerial Code

The Liberal Democrats have written to Cabinet Secretary Simon Case asking him to open an investigation into whether the Chancellor Kwasi Kwarteng breached the Ministerial Code following revelations about his post mini-Budget champagne reception with hedge fund managers.

Hours after delivering the mini Budget to the House of Commons, Kwarteng went to a drinks reception organised by the Conservative Party, attended by business figures including hedge fund managers who stood to profit from the fall in the pound.

Section 8.14 of the Ministerial Code requires Ministers who discuss official business while not in the presence of civil servants to report the content of discussions back to their department as soon as possible.

Liberal Democrat Cabinet Office spokesperson Christine Jardine has written to the Cabinet Secretary Simon Case, asking him to investigate whether Kwarteng complied with the requirements of the Ministerial Code, and what action would be taken if he breached it.

Liberal Democrat Cabinet Office spokesperson Christine Jardine commented:

“The image of the Chancellor quaffing champagne with bankers just hours after announcing his tax cuts for the very wealthiest in society is bad enough. But it would be unforgivable if it turns out Kwasi Kwarteng discussed his plans with hedge fund managers who have made a fortune betting against the British pound.

“The Cabinet Secretary must immediately investigate whether the Chancellor breached the ministerial code. We need to know who was at this event, what discussions were had and if they were properly reported.

“The public is suffering the disastrous consequences of this budget, with soaring mortgage payments and expected cuts to public services. They deserve to know whether the Chancellor has broken the rules as well as trashing the British economy.”

“If Kwasi Kwarteng is found to have broken the ministerial code, surely Liz Truss will have no choice but to sack him.”

ENDS

NOTES TO EDITORS

The letter from Liberal Democrat Cabinet Office spokesperson Christine Jardine to the Cabinet Secretary is as follows:

Dear Cabinet Secretary,

I am writing regarding the conduct of the Chancellor of the Exchequer.

It has been widely reported that on Friday 23 September, following the delivery of the Fiscal Event to the House of Commons, the Chancellor attended a champagne reception organised by Conservative Party Headquarters.

Attendees at the reception included hedge fund managers and other individuals working in financial services, who allegedly ‘egged the Chancellor on’ and urged him to continue with the measures announced in the mini-Budget. These individuals were reportedly benefitting from the collapse in the pound which had been precipitated by the Chancellor’s unfunded promises earlier that day.

The Chancellor subsequently made a media statement on Sunday 25 September, in which he said that further tax cuts were planned.

As you will be aware, section 8.14 of the Ministerial Code states that, “If a Minister meets an external organisation or individual and finds themselves discussing official business without an official present - for example at a social occasion or on holiday - any significant content should be passed back to the department as soon as possible after the event.”

Clearly, given the disastrous impact of the Chancellor’s mini-Budget on the British economy, and the impact which his later statements had upon the financial markets, it is vital that there is transparency regarding the reported reception.

I therefore urge you to open an inquiry into the reception, in order to answer the following questions:

Was the champagne reception organised by the Conservative Party, as reported?
Who attended the reception and was any official business discussed by the Chancellor?
Were Treasury officials or other civil servants present at the champagne reception?
If officials were not present, did the Chancellor report details of his conversations back to the Department as soon as possible after the event as required under the Ministerial Code?
If the Chancellor failed to report back details of the conversations, what disciplinary action will be taken for this breach of the Ministerial Code?

I look forward to hearing from you as soon as possible.

Yours sincerely,

Christine Jardine MP

Liberal Democrat spokesperson for the Cabinet Office