British Chancellor Sacked After Disastrous Tax Plan
By Stefan J. Bos, Chief International Correspondent Worthy News
LONDON (Worthy News) – Britain’s embattled Prime Minister Liz Truss fired her Finance Minister Kwasi Kwarteng on Friday and deleted parts of their economic package in a desperate bid to stay in power and reassure markets after financial turmoil.
Truss replaced Kwarteng, who had been a close friend, with Jeremy Hunt, a long-time lawmaker who served three previous stints as a Cabinet minister.
But the market’s response wasn’t enthusiastic, and critics saw it as panicked moves that left Truss’ credibility in doubt after only six weeks in office.
At a hastily arranged news conference, Truss said she was acting to “reassure the markets of our fiscal discipline” by ditching her pledge to scrap a planned increase in corporation tax that saw the British pound tumble to record lows.
Truss admitted that she had gone “further and faster” than markets had expected during her 37 days in power.
However, “I have acted decisively today because my priority is ensuring our country’s economic stability,” she said. “I want to be honest; this is difficult. But we will get through this storm.”
However, her words didn’t impress the markets, with yields on 10-year government bonds rising immediately after her news conference. Analysts said that indicated investors were still concerned about government debt. The pound fell 1.2 percent against the U.S. dollar.
The next big test for Truss will come Monday when trading resumes on financial markets. The Bank of England on Friday ended its emergency intervention to stabilize long-term bond prices and protect pensions funds.
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