British finance minister vows to restore confidence in financial markets By Reuters

© Reuters. In this photo on Saturday, British Chancellor of the Exchequer Jeremy Hunt in an interview with the BBC on October 15, 2022. REUTERS/Henry Nichols

Written by William James and William Schomberg

LONDON (Reuters) – New Chancellor of the Exchequer Jeremy Hunt has pledged to restore Britain’s economic credibility by holding every penny of government tax and spending plans to account.

Prime Minister Liz Truss Hunt appointed Friday in a bid to salvage her leadership as confidence in her ability to lead the country dried up within her Conservative Party and in international financial markets.

Investors have sold off British government debt since September 23, when Hunt’s predecessor, Quasi Quarting, announced a series of unfunded tax cuts.

The repercussions forced the Bank of England to intervene urgently to protect pension funds and raise the cost of mortgages, which worsened the economic situation of the British.

“No government can control the markets,” Hunt told BBC television in an interview broadcast on Sunday. “There’s one thing we can do and that’s what I’m going to do, which is show the markets, the world, and actually the people watching us at home, we can calculate every penny of our tax plans right.” and expenses. . ”

The British economy is at risk of slipping into recession as the Bank of England raises interest rates to control rising inflation. Bank of England Governor Andrew Bailey said on Saturday that he believes a rate hike will be necessary in early November.

Truss sacked Kwarteng on Friday and dropped the standard parts of the show that they had agreed together.

See also  Iberia sets its goal on discerning customers

The chaos angered the ruling party, which was already divided before Friday and far behind the opposition Labor Party in opinion polls. News of gear replacement plans abounded in the Sunday papers.

Even US President Joe Biden criticized Truss’ original economic plan as a mistake.

The Sunday Times said initial projections by the Office of Budget Responsibility showed a shortfall of 72 billion pounds ($80.42 billion) in current plans.

The newspaper also said Hunt would delay the planned lowering of the basic income tax rate. The Treasury declined to comment on the report.

Asked if he thought the financial markets would trust his plans, Hunt told the BBC: “Well, I think … for people who trade the markets, actions speak louder than words.”

(Additional reporting by Guillermo James and Guillermo Schomberg. Editing in Spanish by Javier Lira)

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top