The Conservative Prime Minister Liz Truss, named Hunt yesterday replacing Kwasi Kwarteng, dismissed from office less than 40 days after his appointment in a context of economic and financial crisis. Truss’s decision comes after he pushed to sustain his economic announcements, despite the reaction of the markets and warnings both inside and outside the Government about the effects of it.
Hunt, former Minister of Foreign Affairs and Health and close to Rishi Sunak (Truss’s opponent in the campaign to become British Prime Minister), must take charge of the budget announced on September 23 by his predecessor and very badly received by the markets, a large part of the Conservative Party and the population.
The new minister admitted that they had committed “mistakes” in this quote, which foresees important public aid and tax cuts, but nothing to finance it. The announcement had generated a disturbance in the financial market that caused the pound and forced the Bank of England to intervene and buy Treasury bonds to prevent further collapse. International organizations, such as the IMFhad warned the Government to review its plan since it raised doubts about the level of indebtedness to which it should access to finance itself.
“The prime minister acknowledged (these mistakes), that’s why I’m here“, he affirmed and supported it by adding that he shared the “bases” of his economic plan.
“I want to be honest with people: We have to make tough decisions The last few weeks have been very difficult,” he insisted, in his first public statements as finance minister quoted by the AFP news agency.
Hunt made it clear that some of the announced measures would be reviewed, given the economic consequences that the Government is going through: “Some taxes will not be cut as fast as people would like. some will rise“.
Truss, in power for just over a month, finally agreed to increase corporate tax, a measure the previous government was determined to abolish. Two weeks ago I had already resigned to move forward with one of its most questioned measures: the abolition of the maximum tax bracket (45%), for income over 150,000 pounds ($170,000) annually.
Source: Ambito
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