UK’s Truss struggles to salvage premiership

LONDON: British Prime Minister Liz Truss underscored her devotion to a “healthy” economy ahead of Sunday’s crisis talks with her new plenipotentiary finance minister, and a tense week of conspiracies by critics. Conservative.
With the President of the United States Joe Biden participate in attacks on her economic agenda, Shoes admits it was a “wrench” to fire her friend Kwasi Kwarteng as the prime minister of the competition.
But writing in The Sun in the Sunday newspaper, she said: “We cannot pave the way to a low-tax, high-growth economy without maintaining market confidence in our commitment to the currency. money”.
That confidence was threatened on September 23 when Kwarteng and Truss announced a right-wing program, inspired by 1980s US president Ronald Reagan, to cut taxes by £45 billion ($50 billion). financed exclusively by higher debt.
The markets reacted strongly, raising borrowing costs for millions of Britons and the Conservative Party poll ratings similarly tumbled, leading to an open battle within the ruling party just weeks after Truss succeeds Boris Johnson.
She significantly fired Kwarteng on Friday, despite being a co-author of the package. His replacement Jeremy Hunt currently lifting tax cuts, while pressing about tough spending curbs by his cabinet colleagues even as Britons endure a cost of living crisis.
The new prime minister met Truss at the prime minister’s country retreat on Sunday to lay out the new budget plan he will deliver on October 31.
“It’s going to be very, very difficult, and I think we have to be honest with people about that,” Hunting said in a BBC television interview broadcast on Sunday.
He defended Truss after she climbed down, and after a disastrous press conference she held on Friday shortly after Kwarteng’s firing.
“She’s willing to do the hardest things in politics, and that’s change the way,” Hunt said, adding: “Acting prime minister.”
The press and some Tories have questioned that ruling, arguing that Truss’ central policy platform now lies in ruins.
The Treasury declined to confirm reports that Hunt plans to delay the planned base tax rate cut, scrapping another headline measure announced by the new government last month.
Up to 100 letters of distrust in Truss have been submitted by Tory MPs, the Sunday Times and Sunday Express say.
Opponents are said to be banding together around Truss’ defeated leadership rival Rishi Sunak and another arch-enemy, Penny Mordauntfor a “solidarity ticket” that can rebuild the struggling Tories.
Defense Secretary Ben Wallace could be another compromise candidate for leadership, the Sunday Mirror reports.
“I worry that over the past few weeks, the government has looked like libertarian jihadists and treated the whole country like lab rats to conduct free-market hypermarket experiments,” he said. Tory’s Robert Halfon, a supporter of Sunak, told Sky News.
Of course, colleagues are not satisfied with what is going on, with the hemorrhaging in opinion polls. “It’s inevitable that colleagues are … talking to see what can be done about it.”
But Johnson loyalists – still seething at Sunak’s alleged disloyalty to the scandal-ridden former leader – have warned against a coronation that cuts out junior Tory members, and says that the party would face irresistible pressure to hold an early general election.
Next week could be a pivotal moment for Truss, starting with the first reactions in the bond and currency markets as trading resumes on Monday, and as her staunch members of Congress meet. back at Westminster.
Hunt has at least won important support from Bank of England Governor Andrew Bailey, who had to make costly interventions to calm the bond market through Friday.
Bailey welcomed a “very clear and immediate meeting” with the new prime minister, as the central bank is poised to hold its next rate-setting meeting on November 3.
But Biden, in a highly unusual intervention in the ally’s financial affairs, criticized Truss’ efforts to cut taxes on “the super-rich.”
“I’m not the only one who thinks it was a mistake,” the Democratic president argued.


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