23 unveiled the biggest package of unfunded tax cuts in half a century, sending the pound plunging to an all-time low against the dollar, and roiling the gilts market. The UK has been beset by market turmoil since Kwarteng on Sept. A person familiar with the matter said earlier that Chancellor of the Exchequer Kwasi Kwarteng’s first choice, Antonia Romeo, was knocked out of the running after Truss decided a candidate with greater fiscal experience is needed to soothe markets. She’s already been forced into a U-turn on her headline plan to scrap the highest rate of income tax, levied on top earners, and on Monday the Treasury brought forward the publication date for its medium-term fiscal plan and a set of independent economic forecasts by more than 3 weeks as it seeks to calm market jitters about its economic plans.įurthermore, on Monday the Treasury announced that James Bowler has been named as its new Permanent Secretary - the department’s top civil servant. Work and Pensions Minister Victoria Prentis on Monday hinted Truss may change her mind, telling Sky News: “It’s really important that we make sure that we target the government resources at the most vulnerable.” The premier’s spokesman, Max Blain, told reporters that Truss is open-minded and in listening mode on the issue.Ī reversal on the issue wouldn’t be the first for Truss as she seeks to reset her premiership barely a month after taking office.
But she’s facing opposition from MPs in her own Conservative Party, including members of the cabinet, over concerns about giving some of the most vulnerable people a real-terms cut in their income in the middle of a cost-of-living crisis. Truss earlier this month hinted she’s considering uprating benefits in line with wages - a move that could save the public purse around £5 billion ($5.5 billion) - despite a promise by her predecessor, Boris Johnson, to match inflation. The Most Powerful Buyers in Treasuries Are All Bailing at Once Screening Procedure Fails to Prevent Colon Cancer Deaths in Large StudyĬathie Wood Warns of ‘Serious Losses’ in Automobile Debt This Is What 7% Mortgages Will Do to the Housing Market Here’s How Weird Things Are Getting in the Housing Market
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(Bloomberg) - Prime Minister Liz Truss is under sustained pressure from all wings of her ruling Conservative Party to lift UK welfare payments by the rate of inflation, rather than the rise in earnings, the latest in a series of rows with her mutinous party after just over a month in office.
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