'Grave error' cost Kwarteng, Waveney MP says after leadership pick promoted

The former health secretary became the UK’s fourth chancellor in just over three months - and the fifth person to hold the role in three years - after Kwasi Kwarteng, who was chancellor for just 38 days, left the role.

Waveney MP Peter Aldous named Mr Hunt as his first choice in the Conservative leadership contest and welcomed the appointment.

Chancellor Jeremy Hunt

He said: "Jeremy was someone who I did vote for in the first round of this leadership contest because I felt he was an experienced person.

"He is level-headed and someone who should be back in government.

"While I was disappointed he didn't progress further, I still hold those sentiments and I am pleased with his appointment."

Mr Kwarteng’s dismissal follows weeks of turmoil after his £43 billion package of unfunded tax cuts spooked the financial markets, which Mr Aldous described as a "grave error".

The commitments to reverse a hike in national insurance rates and ditch a planned rise in corporation tax, without explaining how they would be paid for, were the key planks of her leadership election campaign.

But after the financial markets took fright – with the pound plummeting against the dollar and the cost of government borrowing soaring – the Conservatives have seen their opinion poll ratings tank.

Mr Aldous said: "Kwasi is someone who I have known as a colleague for 12 years.

"He was a very good energy minister and then secretary for state.

"He had a clear understanding and was supportive of the measures we were trying to do here to promote energy on and off-shore.

"I have an awful lot of respect of him.

"As chancellor he made a grave error in proceeding with his statement three weeks ago.

"There wasn't a need to do that at that stage. It would have been far better to go into detail and take stock from advisors, then come out with a measured, responsible plan this week or next.

"I think it was rushed and not clearly thought through."