A shift in British fiscal policy – tax cuts stopped

A “historic turning point” – this is how the change that is taking place now in Great Britain is called. In place of the tax breaks Prime Minister Liz Truss and former Chancellor of the Exchequer – now sacked Kwasi Quarting – proposed earlier, an entirely different reality awaits British businesses and households.

In principle, all planned tax breaks are now being scrapped, meaning that £32 billion (just over 400 billion kroner) will be kept in the British Treasury.

“Set everything on fire”

On Monday evening, Hunt presented his new budget plan to Parliament:

The reason Britain has always succeeded is that we have dared, in the big and decisive moments, to make critical decisions that will serve our country for the long term and in line with conservative values.

The opposition was not affected.

– They set everything on fire, and now they claim that everything is fine. Labor economic spokeswoman Rachel Reeves responded in the House that someone who once set his house on fire is not trustworthy.

absent gear

When Hunt made his plan, Gear assembled to his left and looked down, seemingly unresponsive. To the surprise of many, the Prime Minister was not present during the first hour of the House of Commons meeting, among other things, when the Prime Minister was asked. Instead, Majority Leader Penny Mordaunt had to answer the questions, which, when not praised by her party members, were all on the topic of “Why doesn’t the prime minister here stand up for her actions” and “Shouldn’t she resign?”.

Why Truss wasn’t in the House to answer questions, the House was not told.

Jeremy Hunt took over from Kwarteng, who sacked Prime Minister Liz Truss after just six weeks in office after the government’s proposed £45 billion tax cuts sent the British currency crashing, and the country’s central bank plunged into crisis as financial markets deeply questioned the proposals. .

After Monday’s turnaround, the British pound rose more than 2 percent against the US dollar and the yield on 10-year Treasuries fell.