NatWest Group PLC's (LSE:NWG) chairman has told staff he “never felt so embarrassed internationally” as he did at the International Monetary Fund meeting in the wake of the UK’s disastrous mini-budget, as he warned about government plans to boost the competitiveness of City firms, according to a report in the Guardian.
Sir Howard Davies is said to have told hundreds of employees at NatWest - which is still 48% owned by the state - that ex-chancellor Kwasi Kwarteng’s package of unfunded tax cuts caused “quite a significant problem” and “scarring” of the UK’s reputation, according to a recording reviewed by the paper.
“I was at the IMF conference while all this was going on and Kwarteng was there. It was embarrassing, because he was then summoned back home to be sacked … The perception of the UK was terrible,” Davies told staff.
Davies said banking peers and regulators, including those at the European Commission, tried to comfort him the way colleagues would if you had an ill parent: “It was a bit like that, [with] people coming in to say ‘I’m terribly sorry to hear about your economy and your government, I’m sure it’s not so bad’".
“It was awful, I’ve never felt so embarrassed internationally,” he added.