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UK PM Truss ‘sorry’ for economic ‘mistakes’ but vows to stay on


LONDON: UK Prime Minister begins Liz Truss on Monday apologized for going “too fast too quickly” with reforms that caused economic instability, but vowed to remain ahead despite a series of humiliating escalations.
“I really want to take responsibility and say sorry for the mistakes made … we went too far and too fast,” she told the BBC.
However, she said she was “fully committed to delivering to this country” despite questions about who currently has control of government policy.
Her government on Monday scrapped nearly all debt-based tax cuts announced last month to stem new market turmoil.
The shocking move of the new CFO Jeremy Hunt – parachute into work on friday to replace being fired Kwasi Kwarteng – leaves Truss’ position in jeopardy, with the Conservative MP Roger Gale say Hunting as “de facto prime minister”.
Hunt estimates the tax changes will add up to around £32 billion ($36 billion) a year, after economists estimated the government faces a £60 billion black hole. He also warned of tough spending cuts.
The Prime Minister says no government can control the market – but insists his actions will bring certainty to public finances and help ensure growth.
“The Prime Minister and I agreed yesterday to cancel virtually all of the tax measures announced in the growth plan three weeks ago,” Hunt told parliament, standing beside Truss with a grim look on his face.
The Prime Minister also announced the creation of an economic advisory council, made up of four experts outside the government.
Hours earlier, he had used a brief televised statement to announce a significant reversal to nervous markets, acknowledging last month’s budget from his predecessor had hurt his pocket. public money.
Truss told the BBC she still believes in a “high growth, low tax economy”, but economic stability is “my priority as prime minister”.
Hunt scrapped plans to cut the lowest income tax rate and limit the government’s top energy price freeze – pulling the peg into April instead of late 2024.
After April, his department will “review” its energy assistance package, he said.
Proposals to reduce dividend tax for shareholders are also in the works, along with plans to tax-free shopping for tourists and tax-free alcohol.
The announcement comes as Truss’ ruling Conservatives take to polls amid a reversal of the situation and Britain’s deepening cost of living crisis.
Truss fired her close friend Kwarteng on Friday after their recent tax cut sent bond yields skyrocketing and the pound fell to a record low on fears of rising debt. United Kingdom – fueled intense speculation about her political future a month after taking office.
Hunt’s action on Monday sent the pound soaring against the dollar and euro, while bond yields fell.
Tax breaks financed through borrowing were at the heart of last month’s ill-fated budget.
Truss has made two embarrassing budget rollbacks, cutting taxes for the richest and corporate profits, and is now facing calls to resign even from her own MPs.
“I fear there will be more difficult decisions, both on taxes and on spending, as we deliver on our pledge to reduce debt as a share of the economy over the medium term,” warned Hunt.
“All departments will need to redouble their efforts to find savings, and some areas of spending will need to be cut.”
Hunt has stated that he does not have anything off the table amid speculation about cuts to sectors such as defence, hospitals and schools.
Over the weekend, he met the governor of the Bank of England, Andrew Bailey, and the head of the Debt Management Office to negotiate.
Amid previous turmoil, the BoE launched an emergency purchase of UK government bonds – a policy that ended on Friday.
The budget crisis is said to have sparked a plot to overthrow the prime minister.
British media reported that senior Conservative MPs were plotting to unseat Truss.
Monday’s latest giant turn comes after Shoes was elected Tory leader on a tax-cutting platform that analysts call “Trussonomics”.
“The sound you’re likely to hear is the death knell for Trussonomics, given much of its tax cuts,” said Laura Suter, head of personal finance at stockbroker AJ Bell. She is now signed in the trash.
In two weeks’ time, Hunt will publish its medium-term fiscal plan along with independent economic projections from the Office of Budget Responsibility.
But the main opposition Labor party, which ranks first in the polls, says the ruling Tories are responsible for “chaos and failure”.
Finance spokeswoman Rachel Reeves told parliament: “This is a Tory crisis, made in Downing Street, but ordinary working people are paying the price.

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