Just weeks after assuming office, Liz Truss was forced to do...| MENAFN.COM

Friday, 09 December 2022 03:41 GMT

Just weeks after assuming office, Liz Truss was forced to do humiliating U-turn


(MENAFN) After a mutiny among her own ranks, UK Prime Minister Liz Truss was obliged to do a humiliating U-turn.

The British leader, who has only been in office for a few weeks, issued a 'mini-Budget' on September 23, causing the Pound to drop to record lows, interest rates to rise, and her popularity to plummet.

As part of her budgetary policy, she eliminated the highest tax bracket, the 45p top rate of tax, providing taxpayers earning £1 million (A$1.74 million) a £55,000 (A$95,000) tax break. Those with lower incomes received a much lesser tax break.

Ms Truss and her Chancellor Kwasi Kwarteng also repealed a ceiling on banker bonuses imposed in the aftermath of the 2008 financial crisis.

The PM said her package was a growth plan, but during the height of the UK's cost of living crisis, it appeared to some as a series of freebies for the wealthy, with no assistance for people on lower incomes.

Following that, a YouGov survey showed Ms Truss 33 points behind the opposition, which one of her Conservative MPs described as "annihilation."

On Monday, Ms Truss and Mr Kwarteng were pushed into a humiliating retreat when she was forced to drop the tax reduction to 45p.

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