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After the dismissal of the minister: Another turn of the British Prime Minister Liz Truss

2022-10-14 23:23:06Kosova&Bota SHKRUAR NGA REDAKSIA VOX
After the dismissal of the minister: Another turn of the British Prime Minister
Liz Truss

After sacking Finance Minister Kwarteng, British Prime Minister Truss says goodbye to a key element of her reforms: the multi-billion tax cut package that caused a stir.

British Prime Minister Liz Truss has announced a drastic change in her financial policy: "I have therefore decided to maintain the increase in corporation tax planned by the previous government," Truss said at a press conference. However, it wants to stick to other tax breaks.

"It is clear that parts of our 'mini-budget' went further and were implemented more quickly than markets had anticipated," Truss continued. "Therefore, the way we accomplish our mission must now change. We must act now to convince the markets of our fiscal discipline."

Truss sacks finance minister

Earlier, Truss sacked her finance minister, Kwasi Kwarteng, after just 38 days in office, following a crisis meeting. "They asked me to resign as finance minister. I accepted," Kwarteng said. He will support Truss and his successor. Truss's ideas are spot on, he tweeted.

The new finance minister is expected to be Jeremy Hunt. He was previously British Health Secretary, then Foreign Secretary from mid-2018 to mid-2019. Hunt himself ran last summer to succeed Boris Johnson as leader of the Conservative Party and as Prime Minister , but failed after several rounds of voting.

Kwartengu - sacrifice?

Until now, the British government has focused on massive debt-financed tax cuts. People with high incomes are also expected to benefit from this. Truss and Kwarteng argued that this would stimulate the economy, which would lead to higher growth and therefore increased tax revenue – so the reform would be somewhat self-financing.

However, experts and financial markets do not share this opinion. Following the news, the pound collapsed. The Bank of England had to step in on several occasions and buy government bonds to stop prices from falling and prevent pension funds from collapsing. Rising home loan interest rates have exacerbated the cost of living crisis for many homeowners.

Only nine percent of Britons love Truss

The government made a first U-turn in early October by returning to the particularly controversial removal of the top tax rate of 45 percent. British media have already speculated on several occasions that Truss could make Kwarteng a sacrifice in an attempt to save her head.

Prime Minister Truss, who did not come to power after a regular election but through an internal selection process within the Tory Conservative Party, is herself widely criticized, even within her own party. According to a Times article published this morning, conservative leaders are discussing her replacement.

They would have the support of the majority of British people for this. According to a poll cited by "The Times", only nine percent of them want to keep Truss at the head of the government.


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