China News Service, October 15th. With just over a month in office, British Chancellor Kwasi Kwoten was suddenly dismissed. Prime Minister Tras proposed a series of tax cuts and made another 180-degree turn.
But the outside world does not seem to be optimistic about the "turning around" of the Trass government. The pound fell in response to the call for its resignation to continue, and uncertainty enveloped the UK, which was already internal and external troubles.
Can this female prime minister, who has been in office for only about 40 days, get out of the dilemma?
[Being "flattered" for more than a month after taking office]
On October 14th local time, British Prime Minister Tras fired the Chancellor of the Finance Minister Kwasi Kwatten. This is only about 38 days before Kwoten took office. Former Health Secretary Jeremy Hunter will take over his post.
On October 14, 2022, London, England, Quasi Kwoten got off at Downing Street.
The BBC said this means that Kwoten became the second shortest-serving British Chancellor on record.
It is worth noting that Kwoten expressed support for Tras during his campaign for the British Conservative Party leader. Before becoming the Telas government's Chancellor of the Telax administration, he was even called her "political soul mate".
Regarding the removal of Kwoten, Trass responded that she "respects" Kwoten's decision to "put national interests first" and resign.
KWorten himself also posted a letter he wrote to Tras on social media, saying that being her minister was a kind of "honor" and wishing "all the best".
[Another 180-degree turn]
On the day Kwoten was fired, Tras held a press conference to announce that his government's tax cut plan has made another big turn.
On September 6th local time, Tras delivered his first speech since he took office as the new British Prime Minister in front of the London Prime Minister's Office.
htmlOn September 23, the British government announced the country's largest tax cut in 50 years, but it has been questioned and criticized by the outside world, causing market turmoil. The pound against the US dollar exchange rate fell to around 1 to 1.03 in early Asian trading on September 26, hitting a record low.Under heavy pressure, the British government's tax cut plan took a major turning point on October 3. Kwoten issued a statement on the same day, announcing that he would abandon the previously proposed plan to cancel the maximum income tax rate of 45%.
In just over 10 days, the Trass government has once again made a "stigmatizing" policy change. She confirmed that the company tax will be raised from 19% to 25% next April, and she had promised in the Conservative leader's campaign to cancel the growth.
At this less than 10 minutes of press conference on October 14, Tras admitted: "I want to be honest, it's difficult."
But in the eyes of British media, Tras refused to take any responsibility for the economic turmoil caused by his policies and was determined to continue to serve as Prime Minister. She explained, "It's clear that part of our 'mini budget' (policy) goes further and faster than market expectations, so the way we are now fulfilling our mission must change."
Tras also believes that she "takes decisive action" and is for the national interest.
[Internal and external troubles, unknown prospects]
The outside world seems not optimistic about the Trass government's "turn around" again, and the pound fell.
Tony Travers from the London School of Economics believes that Kwoten has become a "scapegoat for government errors" and the removal did not relieve the pressure on Trass, nor did he calm the Conservatives down.
Data picture: Fuel at a gas station in the UK was closed after being sold out.
Recently, the UK government's approval rating in polls hit a record low. There are also polls that 43% of Conservative voters hope that Downing Street will welcome a new prime minister. Scotland's Chief Minister Sturgeon also called for a general election, believing it is the best practice to maintain economic stability.
James Ethiopia, who is the investment director at a financial services company, also analyzed that "in addition to unwise and inappropriate fiscal easing policies, there are obviously many problems (the UK) that need to be dealt with." He further pointed out that the UK's inflation remains high and the scale of government borrowing is huge, and the real estate market may suffer a heavy blow.
In addition, after the UK government announced a tax cut plan to finance debt, the UK pension industry almost partially collapsed, forcing the Bank of England to intervene multiple times, which also sparked concerns that turmoil could sweep advanced economies.
In the face of related threats, some economists and investors have hoped that the Fed would soften its aggressive rate hike, but hopes have been shattered. The Financial Times quoted expert analysis as saying that the Federal Reserve is expected to raise interest rates by 0.75 percentage points twice this year, and then raise interest rates by 0.5 percentage points in February next year. This is likely to amplify the inflationary problems of central banks in many countries, and the British economy will naturally be unable to escape the fate of adding insult to injury.
Faced with the UK with internal and external troubles and constant turmoil, can Tras, who is urgently "changing" urgently revitalize his morale and meet the challenges?
