These measures, taken to promote economic growth, “could lead to a significant increase in deficits medium-term budget,” Fitch said in its statement.
“We believe that the Chancellor’s (finance minister) statements hinting at the possibility of additional tax cuts and the likely modification of the fiscal rules legislated in January reduce the predictability of fiscal policy.”
tax cut plan
the prime minister Liz Truss He vowed on Wednesday to steer Britain towards growth by closing his ruling Conservative party’s tumultuous annual conference with a staunch defense of his controversial economic plan.
A month after succeeding Boris Johnson, the new Conservative leader turned against financial markets, voters and prominent personalities in her own party with a program of tax cuts that will increase the already very large public debt.
Under party pressure, Truss and his finance minister, Kwasi Kwarteng, had to abandon on Monday a very controversial abolition of the maximum tax bracket, 45%, for income over 150,000 pounds ($170,000) a year, accused of favoring the rich when many Britons sink into poverty.
At the close of the congress, Truss once again defended his ultraliberal shock plan to reactivate a British economy threatened with recession and mired in runaway inflation that is putting many families in difficulty.
The fact of not having specified his economic plan failed to calm the markets, which reacted with a sharp drop in the pound sterling, with a loss of 2.01% against the dollar, reaching a minimum of 1.1241 dollars after his speech. .
Source: Ambito
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