November 30, 2022

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To “stabilize” markets, Liz Truss abandons her tax reform

A month after arriving at 10 Downing Street, but already Liz Truss is weakening in her own camp of backpedals. The British Prime Minister on Friday 14 October abandoned her plan not to raise corporate tax as planned by Boris Johnson’s previous government.

“It’s clear that some parts of our mini-budget are moving faster and faster than the markets expected.”Liz Truss told a very short press conference in which she emphasized the need “stability” For the UK economy. “I am committed to delivering on my promise of strong growth, a prosperous England and weathering the storm.”He hammered the leader of the Conservative Party.

Restructuring in the Ministry of Finance

Liz Truss confirmed the sacking of her finance minister Kwasi Kwarteng on Friday, replacing him with former health and then foreign affairs minister Jeremy Hunt. Cabinet reshuffle Mr. Quartenge confirmed that, in the afternoon, he published on Twitter the letter addressed to the head of government. “You asked me to resign as president [de l’Echiquier]I agreed”He wrote after a month as head of the British Treasury.

In this message, Mr. Quarteng explains that he accepted the position “Knowing very well what the situation is [les tories faisaient] With rising interest rates and rising energy prices around the world, it was incredibly difficult to cope”. “Your vision of hope, growth and change is right”He keeps repeating that “Permanence is not an option”.

Liz dress on the hot seat

At the end of the morning, Mr. Quarteng went to 10 Downing Street. On Thursday, he confirmed that he will remain in his post.

His budget plan, announced on September 23, included tens of billions of pounds in tax cuts without clear funding, roiling markets, sending the pound crashing and deeply weakening M’s government.me Dress. On Friday, Mel Streide, chairman of the Treasury Committee in Parliament, appealed for a swift reconsideration of his request. “Mini Budget”.

According to the British press, some in her own camp are already plotting to oust Liz Truss, based on disastrous opinion polls that predict the defeat of a majority in the next general election scheduled for 2024.

read more: The article is reserved for our subscribers In the political and financial impasse, Liz Truss may abandon part of her economic plan

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