The Prime Minister, Liz Truss, and his Chancellor of the Echiquier, Kwasi Kwarteng, had announced on September 23 a massive energy support plan for households, accompanied by large tax cuts.
Le Monde with AFP
London announced, Monday, October 3, reverse the drop in income tax for the richest, unveiled ten days ago and which plunged the financial markets in the turmoil.
The Minister of Finance, Kwasi Kwartng, explained the reasons for this decision on Twitter :
“It is clear that the abolition of the tax rate at 45 % has overshadowed our mission to attack us with the difficulties in our country. Consequently, I announce that we are not going to continue it. We understand, we have listened. This will allow us to focus on the implementation of the main elements of our growth plan. First, the ceiling on energy prices. “
This measure is evaluated at 60 billion pounds (68.5 billion euros) for only six months, while it must last for two years for households.
The Prime Minister, Liz Truss, arrived at Downing Street in early September, and his Chancellor of Echiquier, Kwasi Kwarteng, announced on September 23 a massive energy support plan for households, accompanied by vast tax cuts.
disorder on the financial markets
The drop in income tax for the upper tranche, which would have increased from 45 % to 40 %, particularly controversial, accused of promoting the wealthiest in the midst of the cost of living in the United Kingdom.
Other tax cuts have also been announced, including an abolition of corporate or social security contributions, a suspension of environmental samples.
The plan as a whole, estimated at between 100 billion and 200 billion pounds by economists but whose funding and economic impact have not been fully quantified, had thrown the disorder on the financial markets.
The book has plunged its historic, and borrowing rates of the British state have jumped up their higher since the 2009 crisis, threatening the country’s financial stability. The Bank of England intervened in an emergency last week to stabilize rates, which threatened to fall into bankruptcy of pension funds.
Questioned on the BBC on his possible resignation, the Chancellor of the Echiquier firmly dismissed this possibility.