U-turn in British fiscal policy – tax cuts halted

“A historic turning point” – that’s what the change happening now in Great Britain is called. Instead of the tax breaks Prime Minister Liz Truss and former Chancellor of the Exchequer – the now-ousted Kwasi Kwarteng – previously proposed, a starkly different reality awaits British businesses and households.

“In principle all” planned tax breaks are now being scrapped, meaning £32 billion (over 400 billion kroner) will be put into the British treasury.

“Set Everything on Fire”

On Monday night, Hunt presented his new budget proposal to Parliament:

– The reason Britain has always been successful is that at the best and most decisive moments, we dare to take decisive decisions that serve our country in the long run and go hand in hand with compassionate conservative values.

The opposition parties were not impressed.

– They set everything on fire and now they say everything is fine. But Rachel Reeves, Labour’s economy spokeswoman, told the House that the man who once set his house on fire was not trustworthy.

A non-existent truss

As Hunt presented his proposal, an assembled Truss sat to his left and looked down, seemingly unresponsive. To the surprise of many, the Prime Minister did not appear during the first hour of the General Assembly meeting for the Prime Minister’s Question Time. Instead, Majority Leader Benny Mordant had to answer unappreciated questions from members of his own party, which ranged from “Why hasn’t the Prime Minister defended his actions here” and “Shouldn’t he resign?” were on the theme of

MPs were not told why Truss was not in the House to answer questions.

Jeremy Hunt took over from Quarteng, who was sacked by Prime Minister Liz Truss after the government’s proposed £45 billion tax cuts. Proposals.

After Monday’s U-turn, the British pound strengthened more than 2 percent against the U.S. dollar and the yield on the 10-year Treasury note fell.