UK Treasury Secretary Kwasi Quarting defended his “mini-budget” of massive tax cuts after a week of financial market turmoil, stressing that “there was no other choice” at a time when inflation was at record highs in the UK.
On Sept. 23, the government unveiled a string of fiscal measures that combine massive energy bill relief and tax cuts for the poor, but their massive costs have sent financial markets into turmoil.
And the Minister of Finance tried to defend the plan in an article published in the Telegraph newspaper, where he considered that “of course, this is a costly intervention, but what was our way out? mass unemployment, collapse of consumption and companies announcing their closure”, noting that “doing nothing is not an option. The cost of inaction would be higher than the cost of this plan.”
After the announcement of this “mini-budget”, the pound hit an all-time low on Monday, the International Monetary Fund asked the UK to review it, while the central bank intervened urgently to calm financial markets.
Source: El Iktisad
