British Prime Minister Liz Truss (47) failed in her ambitious plan to introduce massive tax breaks. Four weeks ago she presented her program, which even caused a lot of criticism in her own conservative party.
The purpose of the tax cut was to support the economy and ease the burden on the wealthy. The economy is in a downward spiral after Brexit, the pandemic and rising energy prices.
Due to the lack of counter-financing – they wanted to compensate for the tax cut with the increase in the government debt – the British pound lost in value. The central bank therefore bought long-term government bonds with no cap to bail out British pension funds, which were on the brink of collapse due to the turbulence.
Two ministers left
When internal party criticism mounted and Truss realized she would barely get the package through parliament, she withdrew the planned tax cut for top earners and fired Finance Minister Kwasi Kwarteng (47). Interior Minister Suella Braverman (42) announced her resignation on Wednesday.
The tax breaks were originally supposed to be around £45 billion (equivalent to nearly £50 billion). £32 billion of that has been scrapped. The expensive energy price cap, which is intended to subsidize private household spending, remained in the program. (female friend)
Source: Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
