UK Truss to fire Kwarteng – Times

Quarten leaves IMF meeting early Pressure on pound and bond price recovery now faces a political battle LONDON, October 14 (Reuters) – British Prime Minister Liz Truss sacks Treasury Secretary Kwasi Quarteng and part of economic package will be discarded. The Times newspaper reported on Friday to survive the market and political pressures caused by the fiscal plan. Minutes ago, Kwarteng returned to London after leaving an early IMF meeting in Washington to begin economic planning. He increased the value of British assets and received international censorship. Register now for free. Unlimited Access to Reuters.com RegisterKwarteng announced a new fiscal policy on September 23, conveying Truss’ vision of massive tax cuts and deregulation to shock the economy for years. growth stagnation. However, the market reaction was so strong that the Bank of England had to intervene to prevent the pension funds from falling into chaos as borrowing and mortgage costs skyrocketed. , and polls showed support for the Conservatives had shattered, prompting colleagues to openly debate whether they should support the party. replaced. The Truss, which sparked market enthusiasm, now risks knocking down the government if it doesn’t find a package of public spending cuts and tax increases that can appease investors and pass a congressional vote in the House of Representatives. Chris Bryant of the party, chair of the Opposition Labor Congressional Standards and Privileges Committee, tweeted: “If you don’t get the budget through Congress, you can’t govern. It’s not about U-turns, it’s about proper governance.” Truss’ search for savings will be more difficult due to the fact that government departments have been cutting budgets for 10 years, while the ruling party’s discipline has worn away after six years of troubling positions. -Brexit political drama. A source familiar with the matter told Reuters that Quarteng left the World Treasury Ministers meeting in Washington. Quarten is being sacked. Downing Street declined to comment, but fueled speculation about his future at Truss’s press conference late Friday. Management and institutional stability deteriorated. Exactly before 11am GMT, a British television news channel began broadcasting live of a British Airways plane carrying Kwarteng landing at Heathrow Airport. Driving growth while reassuring the mayor and seeking action that her legislators can support in Congress. On the 31st, Kwarteng was due to come up with a full plan, with independent forecasts showing how the cost of the tax cuts would impact public finances and boost economic growth. Government critics said the wait was unacceptable. Blackrock’s portfolio manager and former adviser to former British Finance Minister George Osborne, he said on Twitter that the market is now almost fully priced when it makes a U-turn.” . A Conservative MP, who requested an international credit anonymity, said Truss’ economic policies had done so much damage that investors could demand more cuts in public spending equal to the price of the support. “Anything is possible now,” said a lawmaker who supported Sunak in the leadership race. “The problem is that the mayor has lost confidence in the Conservatives. Who can blame them?” Another congressman told Reuters earlier this week that Truss should be aware that he doesn’t have much enthusiasm for the Conservatives right now. According to sources close to the prime minister, Truss is currently in “listening mode” and invites lawmakers to talk about concerns with his team to gauge which parts of the program he will support in Congress. Credit Suisse’s economist Sonali Punhani said: Said I need to see this. A credible fiscal plan that requires the government to find around £60 billion in tax cuts and further cuts in spending. Faster than the second half of our forecast,” said Punhani. One policy that is expected to reverse is the plan to keep the corporate tax rate at 19%, which is raised to 25% when Sunak was Truss’ predecessor Boris Johnson’s finance minister. After proposing to do it, they formed a key part of the package, which could save them £18.7 billion by 2026/27. The latest bout of political drama that will captivate the UK includes: The Bank of England not to intervene in the gold market We are preparing to discontinue. ($1 = £0.8869) Register now for free and unlimited access to Reuters.com. Register by Kate Holton; additional reports by Sarah Young, David Milliken and Muvija M; Edited by Michael Holden , Catherine Evans and Hugh LawsonOur Standard: Thomson Reuters Trust Principle.
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