Chancellor Kwasi Kwarteng reportedly met with hedge fund managers for a champagne reception just hours after his mini-Budget.
The financiers apparently egged on Mr Kwarteng to go further with his ambitious tax cutting plans at the event – sparking fears that those present could have made money from the resulting crash in the value of the pound.
Following his mini-Budget on Friday, Mr Kwarteng said there was “more to come” in an interview on a Sunday morning politics show. This hint at more cuts spooked the markets and likely contributed to the fall in the value of the pound when Asia trading opened on Monday.
According to a report in The Sunday Times, two hedge fund bosses have told associates that the chancellor was a “useful idiot”.
One source said that guests at the drinks reception, which took place on the evening of 23 September, told Mr Kwarteng to “double down” on his radical tax cutting plans.
Businessmen were reportedly ‘egging [Kwarteng] to go further’ after mini-Budget
“He was high on adrenaline. His big thing was: ‘Look, we’re not going to do stuff incrementally. We really believe in this stuff and that’s what we’re going to do,” one source told the paper.
However a source close to the chancellor refuted any suggestions that financiers had any privileged knowledge from being at the party.
They said the claim was “total nonsense”.
“The government’s ambitions on lowering the tax burden are hardly a state secret,” they added.
One person familiar with the meeting told The Sun that the businessmen “were full of praise for his Budget and then egging him to go further.
“I mean, Jesus.”
It has previously been reported that Mr Kwarteng dined privately with a hedge fund investor and his former boss, Crispin Odey, during the leadership contest.
Mr Odey told the Financial Times that his bets against UK government bonds were the “gifts that keep on giving.”
Mr Kwarteng has been contacted for comment.
