In what could only be a Hail Mary attempt to preserve any remaining confidence in the Tori government, a humiliated Liz Truss was forced to scrap her proposed tax cuts after just one week, following massive market unrest and public outcry.
UK Chancellor Kwasi Kwarteng, the mastermind behind the moronic “mini-budget” that entailed widespread tax cuts for those earning over $168,000 per year and unfunded government spending, announced the he will not proceed with abolishing the top tier tax rate. “We get, and we have listened,” he sheepishly tweeted on Monday. “It is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our country.”
Amusingly, just hours before Kwarteng’s announcement, Truss confidently defended her radical economic plan, insisting the proposed budget was fundamental in revitalizing the country’s embattled economy. In fact, Kwarteng was due to deliver a speech on his plan at the Conservative Party’s upcoming annual conference. “We must stay the course. I am confident our plan is the right one,” read advanced extracts from the scrapped speech, as cited by NBC News.
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The announcement sent the pound 1% higher, before paring back gains. The UK currency was sent into free-fall last week, plummeting to a record-low against the US dollar after Kwarteng unveiled the unorthodox tax cuts one day after the Bank of England raised interest rates 75 basis points in effort to fight 40 year-high inflation. Government debt also jumped on news of the abolished economic agenda, with the 10-year gilt yield falling from last week’s high of 4.6% to 4.02%.
Information for this briefing was found via Twitter and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
