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HomeUnited Kingdomin the UK, Liz Truss's budget policy worries and provokes anger

in the UK, Liz Truss’s budget policy worries and provokes anger

50 billion euros less in taxes, that’s the promise from the government on Friday 23 September, when the new Prime Minister Liz Truss unveiled her budget policy. The top income tax is to disappear for all Britons earning more than €170,000 a year, as is the tax on the most expensive property transactions. But alongside these tax cuts, no explanation has been given as to how to compensate for this lack of public finances.

An announcement that caused many reactions, and which went so far as to worry the International Monetary Fund (IMF). He asks for onewrite-up“, Or else “inequality is likely to increase“. Already before the weekend, the reactions had been felt very quickly. In particular, the financial markets plunged, as did the British pound. After an initial mechanical reaction from the stock market, it is now the Bank of England that announces that it may raise its interest rates significantly next month.This decision could lead to much more expensive loans for both individuals and businesses.

A prospect that worries many MPs, such as Roger Gale, elected by the majority, who spoke on ITV News: “If that happens, we could have a storm“, Does he think. “Unfortunately, I’m old enough to remember the last financial crash. People came to see me in tears. They were losing their homes, their communities. I don’t want to see this again“, promote the chosen one, worried.

Several English banks have already decided to limit their loan offers. That National Building Society has even already raised its rates just in case. New investments are therefore mechanically inhibited by this presumption. These announcements have drawn much criticism and even anger from some experts. “I’ve never seen that!“, despairs Davic Blanchflower, professor of economics.”I have worked in finance for 50 years. I lived through the Great Recession and I have never seen such incompetence«, he assures.

After this first storm across the Channel, the Finance Minister is planning new announcements on 23 November.

In Britain, Liz Truss’s fiscal policies are causing concern and anger – report by Richard Place

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