Liz Truss Resigns [Who'll be the next Prime Minister?]

[Dave42]

Originally Posted by Damien

The Bank of England have confirmed they'll stop intervening to buy government debt on Friday which has sent the pound falling again.

then we are really screwed

[1andrew1]

Not a great vote of confidence in the Chancellor.

No 10 reviews Kwarteng’s mini-budget measures following market turmoil

Staffers told to undertake line-by-line scrutiny to see if changes are needed

A senior No 10 official told The Independent that staffers have been tasked with re-examining measures unveiled in the chancellor’s poorly-received statement to see if changes or U-turns might be required.

It comes as the pound fell against both the US dollar and the Euro on Tuesday evening following a warning from Bank of England governor Andrew Bailey that support for bond markets would halt on Friday.

Both the Treasury and No 10 insist that last week’s dramatic climbdown on Mr Kwarteng’s planned abolition of the 45p income tax rate for high earners was jointly decided by the chancellor and prime minister Liz Truss.

But a full-scale reassessment of the mini-Budget would be taken as a sign of crumbling faith from the PM in her chancellor.

The move comes after the Treasury received an initial assessment of Mr Kwarteng’s package from the Office for Budget Responsibility (OBR) on Friday, which laid bare the scale of fiscal tightening that will be needed to get the UK’s books back into balance.

Pressure from MPs to salvage the Conservative Party’s reputation for fiscal prudence, and the severe market turmoil unleashed following the mini-Budget were causing a rethink in No 10, said the official.

Options believed to be under review by No 10 include the possibility of a staggered rise in corporation tax, rather than retaining it at 19 per cent.

Last month’s mini-Budget overturned the previous government’s plans to raise the levy to 25 per cent next year.

Plans under discussion would still keep it below 25 per cent up to 2026 but could see it gradually rise over a number of years.

Another option understood to be under consideration is a one-year delay in the 1p cut in the basic rate of income tax from 20p to 19p, currently due to take effect in 2023.

https://www.independent.co.uk/news/u...-b2200625.html

Another option understood to be under consideration is a one-year delay in the 1p cut in the basic rate of income tax from 20p to 19p, currently due to take effect in 2023.

In other words, put it back where it was before Kwarteng stuck his oar in (and sank the boat).

I love tax cuts as much as anyone, be now really does not seem a good time to be doing them.

You dont cut your income, while spending more, its illogical.

[1andrew1]

More bad news on the economic front - the economy shrank by 0.3% in August.
https://news.sky.com/story/economy-c...-show-12718139

If they do a total reversal then that also destroys their credibility. Truss spent the entire campaign promising tax cuts without big spending cuts and using borrowing instead and called Sunak a doom monger for saying this would spike interest rates and borrowing costs.

It's the right thing to do but how can Truss continue after that?

[papa smurf]

Originally Posted by 1andrew1

More bad news on the economic front - the economy shrank by 0.3% in August.
https://news.sky.com/story/economy-c...-show-12718139

Have you worked out how to blame Truss yet

[jfman]

Originally Posted by Damien

If they do a total reversal then that also destroys their credibility. Truss spent the entire campaign promising tax cuts without big spending cuts and using borrowing instead and called Sunak a doom monger for saying this would spike interest rates and borrowing costs.

It's the right thing to do but how can Truss continue after that?

Fundamentally they don’t have any credibility, with the markets or the electorate, left to lose. “We”re right but willing to pause, listen and make our case over a longer term” is the only card left to play.

[1andrew1]

Originally Posted by Damien

If they do a total reversal then that also destroys their credibility. Truss spent the entire campaign promising tax cuts without big spending cuts and using borrowing instead and called Sunak a doom monger for saying this would spike interest rates and borrowing costs.

It's the right thing to do but how can Truss continue after that?

That's the point Peston made - post 929 refers.

It is slightly possible that she might try and make Kwarteng the fall guy and gamble that the Party doesn't want another change of leadership before the election.

There is an argument that it's best for the Party if the economic difficulties of 2022 and 2023 are associated with Truss and not with a new Conservative leader.

[denphone]

Originally Posted by papa smurf

Have you worked out how to blame Truss yet

He does not need to as you have obviously have not worked out that Liz Truss has shot her own credibility without help from others.

[papa smurf]

Originally Posted by denphone

He does not need to as you have obviously have not worked out that Liz Truss has shot her own credibility without help from others.

you haven't worked out she wasn't the PM in august

Originally Posted by papa smurf

Have you worked out how to blame Truss yet

Have you worked out how to blame Starmer yet?

https://news.sky.com/video/deputy-pr...icies-12717813



https://www.theguardian.com/society/...n-insiders-say

Such a good choice/fit for Health Secretary and Deputy Prime Minister.

I wonder how much Truss owes Coffey?

https://www.thesun.co.uk/news/200790...spending-cuts/

Truss and Chancellor Kwasi Kwarteng have now seen a draft of the Office of Budget Responsibility's independent assessment of their plans with one government source warning their forecast was "dire."

I’m no expert, but shouldn’t the Chancellor look at the impact assessment and forecast before announcing his plan to the markets/world?

[1andrew1]

PMQs on now peeps!

Truss has ruled out public spending cutsin response to a question from Starmer. Obviously, if spending is not increased in line with inflation, there will be effective cuts.

[Ken W]

Originally Posted by Hugh

https://www.thesun.co.uk/news/200790...spending-cuts/



I’m no expert, but shouldn’t the Chancellor look at the impact assessment and forecast before announcing his plan to the markets/world?

That is what I thought.