China News Service, October 17th. According to the Financial Times report on the 17th, the new British Chancellor of the Exchequer Jeremy Hunter admitted that the "mini budget" policy issued by the Prime Minister Tras's government last month "goes too far and too fast." He also criticized his ex-Kwoten for making two major "mistakes" and said the two related measures are being "corrected".
Data picture: Fuel at a gas station in the UK was closed after being sold out.
It is reported that on October 14, British Prime Minister Tras made a 180-degree turn on the issue of cutting corporate taxes and fired Hunter 's predecessor Kwoten, but failed to use these two measures to appease the market.
After the Downing Street press conference in Tras hastily held for about 8 minutes, the UK Treasury market suffered a new round of selling. Whitehall is ready to face further turmoil.
Although Trass has issued instructions to Hunter that there cannot be further reversals regarding the policy announced by Kwoten last month, Hunter said on October 15 that he would be "completely honest with the whole country" about the current crisis and the need to cut spending.
Some media reports suggest that Hunter will delay the implementation of the measure to lower the basic income tax rate, thus reversing another measure in the "mini budget" policy. But Treasury insiders insisted that no decision has been made on this.
Hunter said in a statement that the government must "talk the truth to the people" and "make some very difficult decisions on both expenditure and taxation to reduce debt." He promised, “In making these decisions, our primary consideration will be how to protect and help troubled families, businesses and people.”
"My focus is on growth based on stability," he said. "The efforts to drive economic growth are correct... but we went too far and too fast before."
Hunter also criticized his ex-Kwaten for making two major "mistakes". He said it was "error to abolish the maximum income tax rate of 45% and to "fly blindly" without the Office of Budget Responsibility (OBR) having not published costing. He said the two measures are being "corrected".
But Hunter refused to disclose whether the family welfare payment will be linked to inflation and will increase simultaneously. "I'm very sensitive to the needs of people at the bottom of the income range, but I won't make that kind of commitment within a few hours of taking over the job," he said. "Hunter also told Sky News that the government "will not have the speed of tax cuts it had hoped for before," but insisted that it wouldn't go back to a highly austere level.
Also on October 15, Bank of England Governor Bailey welcomed the government's turn around on raising corporate tax rates, saying he valued "the sustainability of fiscal policy." But he added that the government's energy price guarantee "will increase demand and increase inflationary pressures in the UK". Bailey warned that central bank is currently inclined to significantly increase interest rates in response to Telas and Hunter's fiscal policies, even as the two showed a greater willingness to reduce the ratio of debt to national income.
In addition, a senior British official said: "Trass obviously did not do enough, and there will be more turnarounds and more pain in the future. I don't think they realize that the situation may get worse."
Data picture: British Prime Minister Tras.
The Financial Times pointed out that any more government policy turnover is likely to further endanger the Prime Minister's status. Some senior members of parliament predict that she will find it difficult to survive the current crisis.
A senior MP said: "Now her career or prime minister position doesn't make much sense, it feels like it's over." Another senior MP predicted that the submission of distrust in Tras would reach a critical point in the "nearly future", forcing Graham Brady, chairman of the "1922 Committee" of the Conservative MP group of the Lower House of Parliament, to take action.
