British Prime Minister Liz Truss (47) fires her finance minister Kwasi Kwarteng (47). The deposed minister confirmed this on Twitter on Friday after various British media reported about this.
Kwasi Kwarteng (47) had upset many citizens with his failed budget draft and now has to take the blame for his mistake. With his design, the British government would have taken on billions of dollars in debt so that the wealthy would be freed from their taxes.
Financial markets reacted violently after the announcement of significant tax cuts with no counter-financing plan in September. The pound plunged against the US dollar. The Bank of England has had to intervene several times and buy up government bonds to withstand the fall in prices and prevent the bankruptcy of pension funds. Rising interest rates on home loans exacerbated the cost of living for many homeowners.
Truss withdrew planned highest tax rate
Truss had to backtrack and stop the tax break for the rich and scrap the budget proposal. Your party was heavily criticized for the action. The move to fire Kwarteng comes just before an expected turnaround in the government’s planned tax plans. Just over five weeks after taking office, Truss is under enormous pressure in her own party.
The question is whether Truss will be able to calm the financial markets and consolidate their position with the resignation of their Treasury Secretary and the expected turnaround. British media have already speculated that her party could soon topple her. (SDA)