UK prime minister pressured to leave after sacking finance minister, vowed to cut taxes on money markets

British Prime Minister Liz Truss faces demands from her party to step down. Although she waived the corporate income tax cut and she fired the finance minister she had been a political ally for more than ten years. retire To reduce dissatisfaction with the new government’s £ 45 billion stimulus plan: tax cuts

UK Prime Minister of the Treasury He was relieved of office on October 14 after returning from an IMF meeting in the United States. suddenly to meet the Prime Minister at No. 10 House in London

After the resignation of Mr. Garten Ms. Truss announced the appointment of former Health Minister Jeremy Hunt and former Foreign Minister. he immediately assumed the post of finance minister

Warteng has been in office for just over a month and has just announced plans to stimulate the economy and cut taxes worth £ 45 billion. in the House of Representatives on September 23, but the plan has no details on the eventuality Where will the money for this plan come from? swinging the pound dropped to an all-time low before rebounding Home loan interest rates skyrocket Government bond prices fell sharply. until the intervention of the central bank

The tax cut plans have also created a stir in the financial markets. But Gau Teng insists he will not adjust the stimulus plan. with another name “Mini-budget” and 1 day earlier news sources in the Prime Minister’s office told the BBC Ms. Truss said the Treasury Minister “did a great job “.

After the news of his dismissal published in the British media. Warteng tweeted his resignation letter.

Since the Conservative Party won a landslide election in December 2019, Ms. Truss has been the second prime minister after Boris Johnson and a prominent Conservative Party member. It was time for Mrs. Truss to step down. Because you and Mr. Garten who is a dear friend in politics Having worked together for more than 10 years, they are the ones who drafted this huge economic stimulus plan. Warteng’s dismissal is a betrayal, while the main opposition parties, Labor and Liberal Democrats, have called for the dissolution of parliament and new elections. Some members of the Conservative Party House of Representatives fear that The party will lose the new general elections.

In a very brief press conference on Friday afternoon, October 14, Ms. Truss responded to a reporter’s request for resignation. He will be in the next position to create a low-tax country. has a high rate of economic and stable growth

But it backtracked on the policy announced in September on reducing corporate income taxes. His government had previously announced that it would not raise corporate income tax from 19% to 25%. Johnson announced that it will take effect from April 2023 to revert to previous government policies. This would generate around £ 18 billion in revenue for the state per year.

Several Conservative MPs spoke of dissatisfaction with the content of Ms. Truss’s press conference.

“This is the worst press conference I have seen in a decade and a half,” said an MP from the ruling party.

Some assumed that the trust’s time was running out. and it could see Jeremy Hunt, who was recently named finance minister, become prime minister instead.

Minister of Finance, of short duration

Warteng, who was in office for just 38 days, is the second largest finance minister in office after Ian McLloyd, who died after just 30 days in office in 1970.

Since 2019, the Conservative Party has ruled the country. The UK has four finance ministers, including Nadiem Zahawi, who was the third lowest in office with 63 days, and Sajid Javid, who was the fourth lowest in office with 204 days.

economic stimulus planbe criticized

Warteng intends to provide this multi-billion dollar tax cut to help revive the economy amid double-digit inflation, people can’t hold back. But the opposition party said so This plan is to help the rich more than the poor. it will raise inflation Investors in the financial markets are not convinced by this plan. Many types of tax cuts Where will the money to compensate come from? He fears that the state will have a lot of debt due to lending against a backdrop of rising interest rates. The pound also fell more than 3% against the dollar on September 23, the day it revealed the plan to the House of Commons. It hit the lowest record in 37 years.

At the time the finance minister, who emigrated from Ghana as a child, full of confidence He has an excellent academic record, including a high school at Eton, a bachelor’s degree from Cambridge University, a master’s degree from Harvard University and a Ph.D. research in economic history at Cambridge. I believe this tax cut plan will make the British economy. It can certainly compete with other European nations.

But criticism of the plan is from the opposition Members of the Conservative Party of Financial Markets have grown increasingly demanding a revision of the plan, but Ms. Truss defended the plan. And he has been alongside Gauteng the whole time, one of the Conservative MPs told the BBC: The situation now appears to be “checkmate and we are in disaster”.