HomeWorldUK PM Liz Truss says government will not reverse economic plan

UK PM Liz Truss says government will not reverse economic plan

British Prime Minister Liz Truss broke her silence on Thursday after nearly a week of chaos in financial markets over her tax cut plans, saying she was ready to make a “controversial” decision to restart growth.

one day after bank off England Reviving its bond-buying program in an emergency move to protect the pension fund from a possible partial collapse, Truss blames the turmoil on Russia’s invasion Ukraine because of which inflation To spike the world.

“We had to take immediate action to get our economy moving, to prop up Britain and tackle inflation, and of course, that means making controversial and difficult decisions,” she said in a series of interviews with The Local. BBC radio stations. “But I’m ready to do that as prime minister because what’s important to me is that we get our economy going.”

Truss became prime minister on 6 September after winning the leadership of the governing Conservative Party with promises to cut taxes.

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The British government’s bond yields, which rose after their Finance Minister Quasi Quarteng prepared their financial plan on Friday, rose again in early trading on Thursday, reversing some of Wednesday’s decline when the BoE announced its emergency move.

Sterling was down about 1% against the US dollar, ending its fall by more than 7% in September, nearly doubling against the euro against the dollar.

“This is the right plan we have set out,” Truss said, adding that the UK economy will be on a better trajectory for the long term.

Asked during an interview whether it was time to reverse the mini-budget, Truss said: “No, it’s not because … the package we announced on Friday focused on energy for individuals and businesses. The support was there and I think it’s the right thing to do.”

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Investors, businesses and consumers are now waiting for the government to announce more details about how it plans to grow the economy more quickly, which will fix Britain’s booming public finances. would be important to do.

Tony Danker, director general of the Confederation of British Industry, said: “Every day, every week, every month, the government will now be criticized by markets and businesses for how serious they are about growth and their financial responsibility to pay off debt. Huh.” Said late Wednesday evening.

Former BoE governor Mark Carney criticized the plan to cut taxes, saying it undermined the British central bank’s efforts to curb inflation and sowed the seeds of chaos in financial markets.

“Unfortunately having a partial budget, in these circumstances – tough global economy, tough financial market conditions, working cross-objectives with the bank – is taking quite a dramatic step in the financial markets,” Carney said. . BBC,

Quarteng’s deputy Chris Phillip said the government would stick to its plan to make a full financial announcement on November 23, when it would give more details on how it would cut debt.

Some financial analysts have said that the government may have to go ahead with that announcement to calm investors’ nerves.

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