According to Reuters, Prime Minister Liz Truss expressed regret for endangering the stability of the British economy after being forced to relinquish her expansive tax-reduction proposals in favor of a “delectable” program to reduce government spending.
[bs-quote quote=”I do want to accept responsibility and say sorry for the mistakes that have been made…I wanted to act to help people with their energy bills, to deal with the issue of high taxes, but we went too far and too fast.” style=”default” align=”left” color=”” author_name=”Liz Truss” author_job=”British Prime Minister” author_avatar=”” author_link=””][/bs-quote]
Even after Truss Finance Minister, Jeremy Hunt shredded her proposals on Monday, the markets, which crashed following its “mini-budget” on September 23rd, are still under pressure. She is now struggling to survive in her position, just six weeks after taking office as prime minister.
One of her ministers stated that she could not afford to make any more blunders, which may be challenging given that her government is aiming to make large cutbacks that may exacerbate the anticipated recession. Hunt has already declined to support the defense and health ministries’ operating budgets.
Truss was elected by Conservative Party members, not by the general voter, on a pledge to cut taxes and regulations to boost the economy as part of what detractors refer to as a return to a particular sort of economy, a return to 1980s Thatcherite-style “trickle-down” economics.
Since Truss launched her economic plan during a period of high inflation, Hunt may now need to cut public spending more drastically than the government would have otherwise. This is because Britain’s economic reputation has been destroyed.
The markets reacted so violently that borrowing costs shot up, mortgage lenders withdrew their offers, and pension funds disintegrated.