UK Treasury Secretary returns to London as pressure for another policy u-turn increases.

On Monday, Kwarteng tried to appease lingering concerns by moving the date of his plan to balance government finances to October 31. Ian Forsyth | Getty Images News | Getty ImagesLONDON — UK Treasury Secretary Kwasi Kwarteng suspended visits to the IMF this week and returned to London amid reports that Prime Minister Liz Truss is considering a U-turn on the market-shaking government tax cuts. Kwarteng told reporters . On Thursday he said he would return from the US earlier than planned, without providing further details. Reuters, citing an unnamed source, said the finance minister plans to meet with his colleagues to discuss the government’s medium-term budget plan. Start working next month. Quarten’s sudden departure from a series of international financial conferences in Washington, DC comes amid growing political backlash against the Conservative government’s proposed tax cuts. It was announced on 23 September and £43 billion ($48.7 billion) put the financial markets in trouble. The British pound plunged to an all-time low against the US dollar, borrowing costs rose sharply and the Bank of England was forced to intervene. Kwarteng announced in the government’s so-called “mini-budget”. He believes that changes to corporate and dividend taxes may be on the card. Sterling appeared in the news. The British pound rose 2% on Thursday, trading at $1.1319, ignoring stronger-than-expected US inflation data. Sterling was last traded at $1.124, down 0.8%. Meanwhile, long-term British government bonds, also known as gold, rallied on Friday morning, trading at a 30-year yield of 4.35%. Truss is under tremendous pressure to rethink its economic policy to: Polls show her support for her government has collapsed: Jacob King | Dad Photos | Getty ImagesTruss and Kwarteng have repeatedly defended the government’s radical spending plan, arguing that proposals are needed to spur economic growth. 1 year. When asked about the possibility of a U-turn, Kwarteng, speaking in the United States on Thursday, said he was “focused entirely on implementing growth plans”. An official spokesperson for Truss told CNBC on Thursday that the government’s position had not changed when the government collapsed and investors were asked about reports of possible U-turns. The mini-budget aspect of the government is possible, said UK International Trade Minister Greg Hands. “Let’s wait. We don’t have to wait long until October 31 for the Prime Minister to announce these plans.” Hands said Truss and Kwarteng are “absolutely adamant” about their plans for economic growth. “Growth Plan [is] It’s key, but we need to confirm some of the details, including the full forecast from the Office of Budget Office for 31 October.” Downing Street and the Bank of England have been taking steps to reassure financial markets throughout the week, despite limited success. Notwithstanding, Kwarteng tried to appease remaining concerns by moving the date of his plan for government fiscal balance on Monday to October 31. The IMF welcomed the decision. More details on the fiscal plan can be found on November 23. The Bank of England announced the extension of its emergency bond buying operations amid a fall in the pound and soaring borrowing costs.The Bank of England (BoE) said on Tuesday that “the prospect of a self-reinforcing ‘fire sales’ dynamic poses significant risks to UK financial institutions” and warned of bility.” Bloomberg | Bloomberg | Getty Images The intervention marked the second expansion of Bank’s bailout package, days after raising the daily gilt purchase limit on Monday ahead of the end of a planned purchase plan on Friday. Truss spoke to lawmakers by the middle of the week. She said the House of Representatives would not cut public spending to support the government’s tax cuts. – CNBC’s Elliot Smith contributed to this report.
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