UK Treasury chief dashes back to London amid crisis
Britain’s Treasury chief is dashing back to London for urgent talks with Prime Minister Liz Truss amid growing expectations that they will scale back unfunded tax cuts to calm financial markets and quell a burgeoning revolt by members of their own party
LONDON (AP) — Britain’s Treasury chief is dashing back to London for urgent talks with Prime Minister Liz Truss amid growing expectation that they will scale back unfunded tax cuts to calm financial markets and quell a burgeoning revolt by members of their own party,
Kwasi Kwarteng left the International Monetary Fund’s annual meeting a day early amid the crisis triggered by investor concerns that 43 billion pounds ($48 billion) of tax cuts will push public borrowing in Britain to unsustainable levels and fuel inflation.
Kwarteng on Thursday rejected suggestions that the government would reverse course, but senior members of the Conservative party are publicly advising the government to take action. The pound rose as much as 1.7% against the dollar on Thursday and bond markets stabilized amid expectations that Truss and Kwarteng, whose formal title is chancellor of the Exchequer, will revise their economic growth plan.
“So my advice to the chancellor would firmly be, do it, do it now,” Mel Stride, chairman of the House of Commons Treasury Committee, told the BBC. “Make sure it’s something significant, not just nibbling at the edges but something that’s going to be firm, bold and convincing, and do it as soon as possible.”
