New head of British Economics destroys Liz Truss’ economic vision

In a televised emergency statement to the country, Hunt announced the cancellation of the basic income tax cut from 20 percent to 19 percent and a £13,000 million cut in the price of Social Security. . Hunt confirmed on Friday that he had increased the corporate tax increase from 19% to 25%, excluding small businesses, after his predecessor Kwasi Kwarteng was fired. The removal of VAT on purchases made by foreigners visiting the country has also been canceled and taxes on alcohol will not be frozen. At the beginning of October, Truss had already canceled its plan to lower the higher income tax band from 45% to 40%.In the face of high inflation and rising interest rates.

stability

“We have rolled back almost all the financial measures included in the growth plan,” Hunt said in his speech. At the moment, the most important goal for our country is stability. Governments cannot eliminate market volatility, but they can do their part. Stability affects the price of products in stores, the cost of mortgages and the value of pensions.”

In the scrapping operation, the minister, who in practice assumed command of the Government, went further and drastically reduced energy aid to homes, introduced this month at a global cost of £150,000m. Truss approved a package of 29,000 million for companies over a six-month period and 120,000 million for households over two years.. Now aid to the latter will only arrive until April. Hunt warned that “more difficult decisions” will be made in the coming days on taxes and government spending, but changes to the budget will cost £32bn a year.

Hours later, the minister returned to explain the new measures in the House of Commons and stated that he was not against it in principle, not excluding a future tax on the extra earnings of energy companies. Hunt had to listen to the opposition’s accusations. “The damage has been done. It’s a crisis created in Downing Street, but it’s the ordinary people who will pay the price,” said Rachel Reeves, Labor Party chief financial officer for the portfolio. closet in the shade. Reeves casually turned to Truss, who was sitting next to Hunt, accusing him of hiding and not being there during an urgent question to the government about the crisis. “He has no authority, no credibility. People who cause chaos cannot fix the chaos.The Prime Minister had sent Penny Mordaunt, leader of the House of Commons, to replace him.

Scottish National Party representative Alison Thewliss asked Hunt to confirm whether the cap on bankers’ bonuses would be lifted, as announced by Truss, but received no response.

resignation letters

The elimination of the prime minister’s economic vision further destabilizes his position due to increasing pressure from his own lawmakers to resign. There are several names that are considered possible successors. Bookmakers are turning to former Finance Minister Rishi Sunak (38%), Truss’s primary rival. He is followed by head of defense Ben Wallace (17%), Hunt himself (13%), Mordaunt (10%), and Boris Johnson (5%) reappears in last place.