New UK finance minister tears up tottering PM’s agenda

LONDON: EnglandHis new Finance Secretary on Saturday warned of an impending tax hike as he acknowledged “mistakes” made in a dire budget that still threatens to bring down the Prime Minister Liz Truss.
“Truss fights to survive”, the Times headlined the day after she forced the contest’s prime minister Kwasi Kwarteng to counter the market turmoil caused by their budget on September 23.
The Times, Telegraph and other newspapers report that senior members of the Conservative Party in parliament are still plotting to oust Truss, possibly within days, appalled by the party’s collapse during the visits. polling since she replaced Boris Johnson on September 6.
New seal Jeremy Hunta former secretary of state seen as central to the Tory, made it clear that he was plotting a strategy to bring Truss to 10 Downing Street.
“There have been mistakes,” admitted Hunt, who an ally called the government’s new “executive director” – with Truss now relegated to the backseat chairman role.
Hunt said Kwarteng and Truss made the mistake of trying to cut taxes for the top earners and in presenting their plan without an independent forecast from the Office of Budget Responsibility.
“The Prime Minister has realized that, that’s why I’m here,” Hunt told Sky News.
In one of his first acts upon taking office on Friday, the new prime minister spoke to Bank of England governor Andrew Bailey, who had to make costly interventions to appease the market. The bond market is feverish.
“They discussed the importance of addressing global inflation and their commitment to economic growth and fiscal discipline,” the Treasury Department tweeted.
Tax cuts are at the heart of the star-studded budget Kwarteng and Truss announced.
But they were financed through billions of dollars in extra borrowing, sparking panic in financial markets over the prospect of higher inflation, plunging British households into a cost-of-living crisis.
“We’re going to have some very difficult decisions ahead,” Hunt said, warning that “all government agencies” face spending curbs including on welfare, healthcare and nationals. room.
“And some taxes won’t be cut as quickly as people would like. Some taxes will go up.”
Hunt confirmed he would issue a new financial statement on October 31, agreeing on BBC radio that he has a “clean vehicle” to start over despite Truss’ earlier promises.
Soon after, on November 3, the Bank of England will hold its next rate-fixing meeting.
In a speech in Washington on Saturday, Bailey warned again that the central bank would “not hesitate” to raise interest rates to keep soaring inflation in check, threatening more pain for the economy. UK households and businesses after the budget decline.
Truss fired Kwarteng a few hours after he rushed home early from international financial meetings in Washington, and she organized another turn to dramatically increase the profits taxed on companies. company.
At a later press conference in Downing Street, her first since succeeding Johnson, the prime minister answered only four questions, glancing nervously around the room and giving a brief reply before abruptly leaving. just over eight minutes.
Jenni Russell, columnist for the Times, writes: “Robot, hesitant, mute, defiant, and still completely convinced of the purity and necessity of her mission, Liz Truss has killed a career. politics in minutes”.
When asked why she herself shouldn’t resign, Truss said she was “absolutely determined to see through what I promised”.
But after abandoning right-wing economic promises that helped her win the Conservative Party leadership election against rival Rishi Sunak, Truss has faced growing criticism that Her reputation has gone bad.
“I feel frustrated, very disappointed,” Tory MP Christopher Chope, a Truss loyalist, told BBC television.
Former Conservative leader William Hague says Truss’s post as chancellor is now “hanging in the air”, while former prime minister Philip Hammond said she has “throw away years of hard work” to set her own record. party on economic capacity.
But with the opposition Labor party surging in the polls, Wales Minister Robert Buckland has warned his staunch colleagues against “throwing another prime minister to the wolves”.
Labor leader Keir Starmer accused Truss of “stalking”, and demanded an early general election.
“There is no historical precedent for what they have done to our economy,” he said in a statement Saturday.


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