For the second day the Bank of England did not go to the market to buy bonds. The British finance minister is to meet with bankers about home loans. And the UK Prime Minister promised “growth, growth, growth”, as she defended her plan, despite the setback given to the intention to eliminate the highest rate of income tax.
Liz Truss withdraws in a “crazy” plan but does not convince the markets. “Credibility will be difficult, if not impossible, to regain”
The start of Liz Truss’s term has not been easy. The prime minister who succeeded Boris Johnson spoke to the Conservative Congress on Wednesday. The pound, after the speech, fell against the dollar. Liz Truss vowed to support the British and push ahead with a plan of “growth, growth, growth,” in a speech that was interrupted by protesters holding a banner with the Greenpeace logo and the message: “who did you vote for this?
Liz Truss became Prime Minister in an internal Conservative vote, not having been elected by the population. She responded to the protests by speaking of an anti-growth coalition, which included the opposition, unions and environmentalists. “Enemies of the company”.
He continues to defend that the tax cut “is the right thing to do economically and morally.” This despite having backed down with the intention of ending the highest income tax rate (45%). “I understood and I listened,” he stressed, using the same phrase his finance minister used when he decided to retire.
“We perceive and listen.” UK Chancellor of the Exchequer Makes ‘U-Turn’ on Plan to Eliminate Top Tax Bracket
“The dimension of the challenges is enormous. War in Europe for the first time in a generation. The greatest uncertainty after Covid. And a global economic crisis. That is why in Britain we need to do things differently. Whenever there are changes, there are interruptions. Not all are favorable. But everyone will benefit from the result: a growing economy and a better future.” He guaranteed that he would have an “iron discipline” in public spending, which was read as the possibility of an austerity plan.
Source: Observadora
