The new British Chancellor of the Exchequer admits mistakes in British economic policy

On the 15th local time, the new British Chancellor of the Exchequer, Jeremy Hunt, publicly stated that the previous fiscal policy formulated by the British government was too hasty, especially on issues such as large-scale tax cuts.

Hunter said the previously drafted fiscal policy was too “blindly optimistic” about the prospects and ignored the basic demands of ordinary people, damaging the government’s credibility. He stressed that in today’s complex and difficult international and national context, using loans to finance tax cuts “doesn’t work” and lowering taxes on the rich is a mistake.

On September 23, the UK government announced large-scale tax cuts to revive the economy, including the removal of the top 45% income tax rate. However, this measure is considered a tax cut for the wealthy and will increase inequality in the UK. Investors also believe that, without cutting public spending, the UK government’s large-scale tax cuts will lead to a larger fiscal deficit.

The pound fell and British government bonds were sold sharply after the announcement of the new measures. The Bank of England had to bail out the market as a matter of urgency by stabilizing the financial markets through massive bond purchases. British Prime Minister Truss also faces doubts about his ability to rule inside and outside the Conservative Party. In order to save the slump in approval ratings, Truss fired Chancellor Kwarten on the 14th, urgently appointed Hunter as his successor, and decided to review the mistakes in the previous plan.