The new head of British Economy destroys the economic vision of Liz Truss
Hunt, who in practice takes control of the Government, dismantles the “growth plan” after the chaos sown in the financial markets
The new finance minister of the UK, Jeremy Hunt, has pulverized the disastrous plan for economic “growth” of < strong>Liz Truss, eliminating almost all the tax cuts announced a month ago by the prime minister and reducing aid for energy bills in homes. In order to calm the financial markets and reduce public debt, Hunt advanced The measures that must be presented in the new budget next October 31.
In a declaration of emergency televised to the country, Hunt announced. the cancellation of the reduction of one point, from 20% to 19%, of the income tax in the basic tranche and the cut of 13,000 million pounds sterling in the price of Social Security. Hunt confirmed The increase in the corporate tax, from 19 to 25%, except for small companies, which had been brought forward on Friday, when his predecessor, Kwasi Kwarteng was dismissed. >. It was also The elimination of VAT on purchases by foreigners visiting the country will no longer apply, and taxes on alcohol will not be frozen. At the beginning of October, Truss had already canceled the planned reduction from 45% to 40% of the high income tax band, in the face of high inflation and rising interest rates.
“We reversed almost all the fiscal measures that were in the growth plan,” he acknowledged. Hunt during his speech. “The most important goal for our country right now is stability. Governments cannot eliminate volatility from the markets, but they can do their part. Stability affects the price of products in stores, the cost of mortgages and the value of pensions,” he added.
In the scrapping operation, the minister, who in practice has taken over the controls of the Government, went even further and drastically reduced the energy aid. ;ethics to homes, introduced this month at a global cost of £150bn. Truss had approved a package of 29,000 million for companies for a period of six months and 120,000 million for households for two years. Now the help to the latter will only come Until April. Hunt has warned that there will be “more difficult decisions” in the coming days on taxes and public spending.
The dismantling of the prime minister's economic vision leaves her position even more precarious, subject to increasing pressure from her own deputies to resign. There are several names that are being considered as a possible successor. The bookmakers are leaning towards former Finance Minister, Rishi Sunak (38%), Truss's rival in the primaries. He is followed by the Minister of Defense, Ben Wallace (17%), Hunt himself (13%), the leader of the House of Commons, Penny Mordaunt (10%) and Boris Johnson (5%) reappears in last position.