In addition, the term of the state’s energy ceiling should be shortened, as new Treasury Secretary Jeremy Hunt announced Monday in a soon-to-be-scheduled statement on the country’s budget. “The main goal for our country now is stability,” said the finance minister.
The national energy price ceiling was intended for a period of two years. It is now limited to a period of six months for the time being. The Conservative government also announced at the end of September to cut the base income tax rate from 20 to 19 percent, collect a previously planned increase in corporate income tax and grant further tax breaks. That’s all gone now.
The background to the 180-degree turnaround is that financial markets went crazy after announcing massive tax breaks without a counter-funding plan. Investor confidence in the UK government seemed to have been completely lost. The pound plunged against the US dollar. The Bank of England had to intervene several times and buy government bonds. Rising interest rates on home loans exacerbated the cost of living for many homeowners.
On Friday, Truss fired her former finance minister, Kwasi Kwarteng, announced a partial departure from her tax policy and appointed Hunt. Now she followed her lead. The question is whether Truss can still save her office. In particular, capping energy prices for households and businesses was considered their most important political project. The fact that she now has to come back to this is considered a confession of a total failure.
(SDA)