Liz Truss retires. Ten days after announcing a controversial fiscal maneuverThe UK government has decided not to go ahead with the abolition of the 45% sui cap higher incomes. The measure is part of a larger package 45 billion pounds, which sparked panic in the financial markets last week and sent the British currency to a high. Corresponding Kwasi Kwarteng, Treasury Secretary, cutting taxes on the highest income earners has “overshadowed our mission to address our country’s troubles. That’s why, I’m telling you we won’t do itKwarteng tweeted. “We understood, we listened. This allows us to focus on executing the key elements of our growth plan. First the Upper limit for energy prices“.
Truss’ retreat and fear of the markets
Truss’s second thoughts are actually more than that symbolic. Tax cuts for income beyond that 150,000 pounds they only weigh 2 trillionon 45 Sums allocated by the UK Government. However, the measure triggered a wave of popular outrage, since in an environment of severe economic difficulties it only favored the wealthiest sections of the population. Otherwise, Liz Truss’ plan against expensive energy remains intact. away Tax relief, an essential goal for the conservative prime minister. The trigger for the financial crisis and the dissatisfaction within one’s own party was, however, another factor: This massive tax cut is being financed by resorting to more debt. A strategy that, given the high inflation, has raised some doubts in the financial markets. The pound fell to an all-time lowwhile UK government lending rates are at their highest since 2009 crisisforces the Bank of England intervene to stabilize prices.
That political debatethen he did the rest. An increasingly important part of the Tories has begun to hypothesize mistrust by Liz Truss, who took office in Downing St just a month ago. In fact, polls show a sharp decline in Conservative popularity and a consequent increase in Labor preferences. In an interview with the BBC broadcast this morning, Minister Kwarteng firmly ruled out the possibility that he or the Prime Minister they quit. The change of course announced by the British government in the last few hours seems to have already started to have an impact. THE interest rates on government bonds They returned to go down. The 10-year yield falls 8 points to 3.99%, while the 30-year yield falls to 3.76%.
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