Due to radical tax cuts, the financial market has been turbulent, and the British Prime Minister Tras announced his resignation.
On the evening of October 20th, Beijing time, Elizabeth Trass announced his resignation as British Prime Minister. She said she would continue to serve as prime minister until she chose a successor. And the leadership election will be held next week. Tras officially took office as British Prime Minister on September 6, and his term of less than two months also made him the shortest serving prime minister in British history. After the
news was announced, according to Bloomberg data, as of 8:45 pm, the 10-year UK Treasury yield fell 7 basis points to 3.81% during the day. The yield on the 5-year Treasury bond fell 6 basis points to 3.77%, while the yield on the 2-year Treasury bond fell 7 basis points to 3.32%.
At the same time, the pound pound jumped more than 20 points against the US dollar in the short term to 1.1299, and now it is 1.1264, with the intraday increase of at 0.39%.
On Friday, September 23, local time, the Trass government announced the country's most radical tax cuts in nearly 50 years, including the cancellation of the highest income tax rate that only applies to high-income people and lower income tax and home stamp duty. At the same time, previous plans to increase corporate income tax will also be put on hold.
html opened on September 26. Affected by the above aggressive tax cut policies, the pound continued to decline against the US dollar, falling to 1.0224 for a time, with the maximum drop of more than 5%, hitting a new low since 1985. In the stock market, the FTSE 100 index plummeted by 141 points on September 23, a drop of nearly 2%. At the same time, the UK's 2-year, 5-year and 10-year Treasury bond yields rose by 43, 51 and 33 basis points respectively compared with the previous day.The financial chaos caused by the tax cut policy also led to the resignation of the British Chancellor of the Exchequer.
On October 17, the new British Chancellor of the Exchequer Hunt (Jeremy Hunt) announced that it would cancel almost all previously proposed government tax cuts to stabilize the financial market and the Trass government.
3 days later, Tras announced his resignation.
