Not Anymore – UK Economy 😬

Not Anymore – UK Economy

The United Kingdom has undergone major political changes in the last 6 months. Boris Johnson resigned as Prime Minister after holding the powerful position since 2019, and a leadership election has put forth a new leader of the island nation: Liz Truss. Truss has been placed into a position where the country is dealing with record heat waves and a struggling economy. Even worse, the recent passing of Queen Elizabeth II has placed additional stress on the country.

The pressure on Truss has possibly led to some bad decisions on her end and the administration had to back up on one of their proposals. Truss wanted to revamp the British economy, and one of her proposals was to perform some of the biggest tax cuts in British history while funding a large spending package to boost the economy. The most controversial was the tax cut for high earners, with the top rate of tax being reduced from 45 percent to 40 percent. This was announced on Friday, and it sent the value of the pound plummeting to all-time lows while government bonds sold off quickly. Citizens were outraged as living has become unaffordable for some, and the rich are in far less need of a tax break at the moment. Truss continued to back up the statement, but it was announced by the Finance Minister on Monday that they would walk back on that in what was an embarrassing move for the administration. Prices stabilized in Britain as volatility dissipated, and it marks a dangerous misstep for the Conservative Party. They said they would continue with the other proposed tax cuts, and the country’s eyes are now forward on to what comes next.

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