to “reassure” the markets, Liz Truss gives up her tax reform

Just over a month after her arrival at 10 Downing Street, but already weakened in her own camp, Liz Truss backs down. The British Prime Minister withdrew on Friday, October 14, from her plan not to increase corporate tax, as the previous government of Boris Johnson had planned.

“It is clear that some parts of our mini-budget were going too far too fast compared to what the markets expected”said Liz Truss in a very short press conference, in which she insisted on the need to “stability” for the UK economy. “I am absolutely determined to deliver on the promise I made to deliver stronger growth, a more prosperous UK and weather the storm we find ourselves in”hammered the leader of the Conservative Party.

Reorganization in the Ministry of Finance

Liz Truss also confirmed the dismissal of her Finance Minister, Kwasi Kwarteng, replaced by Jeremy Hunt, former Minister of Health and then Foreign Affairs. A ministerial reshuffle confirmed by Mr. Kwarteng himself, earlier in the afternoon, which posted on Twitter a letter addressed to the head of government. “You asked me to resign as Chancellor [de l’Echiquier]I accepted “he wrote, after just over a month in charge of the British Treasury.

In this letter, Mr. Kwarteng explains that he had accepted the position in “Knowing full well that the situation to which [les tories faisaient] Dealing with it was incredibly difficult, with rising interest rates around the world and rising energy prices.”. “Your vision of optimism, growth and change was the right one”continue, repeating that “status quo is not an option”.

Liz Truss on the bench

Late in the morning, Mr. Kwarteng headed to 10 Downing Street, having returned earlier than expected from Washington, where he was attending the annual meetings of the International Monetary Fund and the World Bank.

His budget plan, announced on 23 September and including tens of billions of pounds in tax cuts with no clear funding, has destabilized markets, sent the pound tumbling and profoundly weakened the government of Truss. On Friday, the chairman of the Treasury Committee in Parliament, Mel Stride, called for a speedy review of his “mini budget”.

According to the British press, some members of his own side are already in the maneuver to overthrow Liz Truss, in the face of disastrous polls that announce a crushing defeat of the majority in the next general elections, scheduled for 2024.

Also read: Article reserved for our subscribers In the political and financial stalemate, Liz Truss could give up part of her economic program

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Vince Fernandez

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