(Observer.com ) British Prime Minister Tras' "mini budget" plan released last month has just been launched, which has attracted strong turmoil in the financial market, and has also put Tras, who has just taken office, into a political crisis.
On the morning of October 19th local time, Tras participated in the House of Commons for the first time since the announcement of the "mini budget". As expected, she became the "target" at the meeting, and almost all parties accused her of previous economic decisions. However, Tras, who was absent from the last questioning meeting, responding twice with words like "I am a fighter, not a vain give up."
At the same time, Tras is also compromising on the key pension issues. Such a performance also allowed her to withstand this questioning meeting for the time being. But with the increasing inflation in the UK, the instability of financial markets, and the risk of a recession in the economy, Trass's position as prime minister is already "in jeopardy".
Tras at the questioning meeting British Parliament TV station
According to the BBC,Tras faced fierce accusations from MPs of various parties at the questioning meeting on the 19th. In the opening stage, Opposition Labor Leader Starmer took the lead in attacking, mocking that a book about Tras' "prime career" was being written, and it was time to be published before Christmas, and asked: "Is that the release date of this book or your departure date?"
Tras responded that less than two months after taking office, she has ensured the stability of energy prices and reversed the rise in National Insurance. In addition, her administration is taking steps to “suppress radical unions.”
Then, Stamer criticized Trass for his leadership. Tras was still sticking with her energy subsidy plan last week, but the new British Chancellor of the Exchequer Hunter announced on the 17th that it would end energy subsidies in April next year. According to this, Starmer questioned: "She doesn't care about the matter, how can she hold her accountable?"
Tras responded that her energy policy is to protect vulnerable groups. “I had to make a decision to adjust the policy due to the economic situation,” she said. "I am a person who is ready to face difficulties and I am ready to make difficult decisions. Unlike this respectable gentleman, he has no plans."
The two are still in the fight. Starmer criticized Trass' policy as "fantasy economics", and the end result was "disaster". Former Chancellor Kwasi Kwoten has left office, "Why is she still here?"
Stamer questioned Tras at the meeting. British Parliamentary TV station
Tras replied toughly that she was a fighter, not a sloppy person. "My actions are for the national interest to ensure our economic stability."
Then, Liberal Democratic Party , Scottish National Party and even Conservative Party also joined the questioning queue. In a Q&A with Conservative MP Stewart Mike Downer, Tras promised that pensions would grow in parallel with inflation, a key compromise for her, but she did not commit to the same critical national welfare issue.
According to the statistics of BBC, a total of 6 Conservative members questioned Trass at the meeting. Nearly 40 minutes later, the questioning ended and Tras left the House of Commons.
BBC political commentator Chris Mason believes that Trass has a tough attitude this time and also compromises on the issue of pensions. "Under the most difficult questioning and in the most desperate situation, this questioning will progress, as smooth as Tras himself hoped."
But on the other hand, the situation facing Tras is still serious. On the 23rd of last month, former British Chancellor Kwoten released the government's "mini budget". It is understood that specific measures include cutting national insurance, abolishing and raising corporate tax plans, and reducing stamp duty on real estate purchases. In addition, the British government plans to establish low-tax areas in many places in the country.
But this "mini budget" has triggered a violent shock in the financial market. The pound once fell to its lowest level in nearly 51 years of 1.0327, and the UK's 10-year Treasury bond yield also showed its largest single-day increase in 40 years, hitting its highest level since November 2008. To this end, the Bank of England had to withdraw from new measures to stabilize the financial market.
Analysts quoted by the US consumer news and business channel (CNBC) on the 19th believe that the UK bond market may recover, but the UK's economic credibility has been damaged for a long time.
In addition, the UK's Office for National Statistics (ONS) released the UK's September inflation rate on the 19th: 10.1%. This is the second time that the UK's inflation rate has broken through double digits this year and reached a 40-year high. Relevant polls show that at a time of high inflation, the cost of living for the British people continues to rise, with more than half of the respondents cutting expenses for heating, hot water and electricity, and more than 14% of the respondents decided to go on a diet and starve, and 1 in every 12 people was unable to pay their household bills.
UK inflation rate trend chart in the past 10 years Source: ONS
Due to a series of political turmoil caused by the "mini budget", Tras' position as prime minister is "in danger". On the 18th, the British " Guardian " analyzed the article saying that although the plan to overthrow the position of Prime Minister Tras is being launched at an extremely fast speed, there is neither a mechanism to force him to step down nor an acceptable candidate to unite the Conservative Party again.
She currently has four possible outcomes: one is that there are enough members of parliament to decide "the game is over", the second is that the "Halloween Statement" of the Finance Minister crushes the Prime Minister, the third is that the by-election makes Tras scarred, and the fourth is the failure of local elections and the subsequent defeat of the general election.
Whether Tras can survive until next spring is still a question mark. On October 18 local time, the latest report released by British poll company YouGov showed that Tras's approval rating among the British people has dropped to 10%, and about 80% of the surveyed British adults are opposed to Tras, and the net approval rating has reached a historical low of -70%. At the same time, 55% of the British Conservative Party members surveyed hope that Tras will resign.
. Among the candidates suitable for taking over Trass, former Prime Minister Johnson received the highest support (32%), followed by former Chancellor Sunak (23%) and Defense Secretary Wallace (10%).
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