Sachin Ravikumar and Elizabeth Piper
LONDON (Reuters) – U.K. Prime Minister Liz Truss is on the verge of scrapping her massive tax cuts and saying she Will continue to try to put the economy on its feet, despite calls for her to resign.
After weeks of selling sterling and government bonds blaming “global headwinds”, Truss said on Monday she was “going too far, too fast” for her aggressive economic plan , to free Britain from years of tepid growth. A handful of lawmakers urged Truss to resign just six weeks after she became prime minister.
Truss says she will keep fighting and tells her senior ministers she wants to confess to the public that these are tough times
A new YouGov poll Even among Conservative Party members who supported her as prime minister, more than half of respondents said she should resign, the survey showed. A third want her ex, Boris Johnson, to return.
Markets tumble after Truss’ September 23 ‘small budget’, even after her Treasury Secretary Jeremy She remains under pressure after Jeremy Hunt tore up her plans on Monday.
“I do want to take responsibility and apologise for mistakes made,” Truss told the BBC late on Monday.
“I want to take action to help people pay their energy bills, tackle high taxes, but we’re going too far, too fast.” Truss says she’s “persisting” and she will lead the Conservative Party Run for the next election due in about two years, though the announcement was accompanied by laughter.
Earlier on Monday, Truss watched as Hunt tore up her proposed plan less than a month earlier, which triggered a bond market meltdown so bad that the Bank of England had to Take action to prevent pension funds from collapsing.
‘Honest’
For some in the party, seeing a prime minister humbled in parliament did not give her the confidence to keep fighting.
James Hippey, a minister in the armed forces, said his boss Truss said no more mistakes could be made.
Truss will later speak to her pro-Brexit lawmakers angry at her for dropping taxes – cutting the drive. The government has urged MPs to delay any move to oust her until the mid-term fiscal plan is presented in October 31.
“The prime minister says she wants to be honest with the public, times will be tough, but by addressing longstanding problems now, we can put the country on a path to a stronger future,” her spokesperson She was quoted as saying
Truss was elected by members of the Conservative Party rather than the wider electorate, promising to cut taxes and regulation to stimulate the economy, in what critics called a return 1980 Thatcherian “trickle down” economics.
But the market reacted so violently that borrowing costs soared, lenders cancelled mortgages and pension funds were thrown into disarray.
Ryanair boss Michael O’Leary describes the UK’s economic situation as a “car crash” he blames on the country’s 2016 vote to leave the EU Decide.
Spending squeeze
With the reputation of the UK economy in tatters, Hunter may now have to go further in his quest to cut public spending if Truss does not Unleash her economic power and the government will not do it.
A spokesman for Truss said that despite previous commitments, the government could not yet make commitments in individual policy areas, but it was focused on protecting the most vulnerable. He said Truss kept her promise to increase defense spending 2030.
Torsten Bell, head of the Resolution Foundation think tank, says the government may need to cut public spending by around 30 billion pounds ($ 30 Billion Dollars) – After successive Conservative governments, this has been a politically very difficult task in the past 10 year to cut departmental budgets.
One area of spending that has begun is Tesla’s massive two-year energy support program, which is expected to cost more than 100 £1 billion, which Hunter said will now run until April before a review.
($1=0.8807 GBP)
