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World British government is making U -turn

12:50  03 october  2022
12:50  03 october  2022 Source:   spiegel.de

Truss doubles down on the new British tradition of reckless debt

  Truss doubles down on the new British tradition of reckless debt The UK could be in for more economic pain in the near future.The irony of those comparisons of Truss to Margaret Thatcher is that her fiscal policies are exactly the reverse of the Iron Lady’s — and far more reminiscent of the pre-Thatcher Tory party and the Callaghan Labour government that followed it, which had to go with a begging bowl to the International Monetary Fund (IMF) in 1976.

after violent criticism of its economic plans, the British government has carried out a massive U -turn. Finance Minister Kwasi Kwarteng announced on Monday morning in Birmingham not to delete the top tax rate of 45 percent for top earners.

Kwasi Kwarteng (l-r), Finanzminister von Großbritannien, Liz Truss, Premierministerin von Großbritannien, und ihr Ehemann, Hugh O'Leary, nehmen an der Jahreskonferenz der Konservativen Partei im International Convention Center teil. © Stefan Rousseau/PA Wire/dpa Kwasi Kwarteng (L-R), Finance Minister of Great Britain, Liz Truss, Prime Minister of Great Britain, and her husband, Hugh O'Leary, take part in the annual conference of the Conservative Party in the International Convention Center.

"We understood it, we listened," wrote the conservative politician in a statement published on Twitter. Previously, prominent members of the Tory party, such as ex-Minister Michael Gove and Grant Shapps, had sharply criticized and indicated the tax reliefs and enormous public debt to want to vote against it in parliament. The government had to fear a rebellion in its own party.

Kwarteng had announced the tax cuts a week ago, which should particularly benefit the richest in society. Prime Minister Liz Truss' new government wanted to boost economic growth. After the announcement of the plans financed through debts, the pound course was rushed into the basement. The British central bank was forced to step in and acquire government papers with a long term - without upper limit.

in other, also controversial parts of the business plan, Kwarteng wants to continue to hold - including tax cuts for other income groups despite an enormously high inflation.

Tax cuts 2024/25 Australia explained: New tax rate might be ditched by Anthony Albanese .
The Albanese government would be 'sticking its head in the sand' if it did not rethink promised big tax cuts, according to Labor heavyweight Wayne Swan, but a minister stood by the pledge an hour later.The plans for 2024/25 tax cuts would see the 37 per cent rate on those earning between $120k and $180k replaced with a 30 per cent rate for everyone earning between $45k and $200k.

usr: 1
This is interesting!