Truss has only been in office for a little over 40 days, yet she has already been forced to make an embarrassing U-turn on the anticipated tax cuts that were a key part of her economic programme.
London: British Prime Minister Liz Truss’ fate is uncertain and now questions are being raised about whether she will last till Christmas. Most answers are negative. Truss has only been in office for a little over 40 days, yet she has already been forced to make an embarrassing U-turn on the anticipated tax cuts that were a key part of her economic programme.
The UK PM’s position in the office appears to be unstable, and she is having a hard time holding onto her job after only six weeks. Her ideas haven’t been able to calm the markets or relieve lawmakers’ worries about inflation.
After Boris Johnson submitted his resignation to the Queen of Balmoral, Liz took charge as PM. When she introduced her new cabinet, Truss offered quick support for consumers and companies facing high energy bills. She did not, however, support a windfall tax on the energy industry. She pledged to reduce red tape and taxes while boosting Britain’s weak economy.
British Finance Minister Kwasi Kwarteng unveiled his economic strategy, called a “mini-budget,” on September 23. The plan, which had the aim of breaking the “cycle of stagnation” in the British economy, included 45 billion pounds ($50 billion) in tax cuts, including a lower income tax rate for the highest earners.
To preserve her own skin, Truss fired Kwasi Kwarteng, the Chancellor of the Exchequer of the United Kingdom, amid mounting criticism. Jeremy Hunt, who held the positions of health minister and foreign secretary in the Conservative governments of David Cameron and Theresa May, took the place of her longtime friend and ally.
At a news conference, she also acknowledged that “elements of our mini-budget went further and faster than markets were expecting.”
The prime minister’s liberal economic policies and several U-turns are responsible for severe financial as well as political crises. A survey conducted by the Times revealed that Conservative party MPs are reportedly discussing ousting Liz Truss and replacing her with a joint ticket of Penny Mordaunt and Rishi Sunak.