UK government abolished plan to slash taxes on high earners in major U-turn

“It is clear that the abolition of the 45p tax rate has become a distraction from our primary mission of addressing the challenges facing our economy,” Finance Minister Kwasi Kwarteng said in a statement. Rob Piney | Getty Images News | fake images LONDON — The UK government on Monday reversed a planned removal of … Read more

Britain’s Liz Truss to hold emergency talks with budget watchdog

British Prime Minister Liz Truss and British Chancellor of the Exchequer Kwasi Kwarteng. Dylan Martinez | Afp | fake images The OBR had prepared a general economic forecast ahead of the September 23 mini-budget, but the UK Treasury chose not to publish it, according to the BBC. Kwarteng said a full forecast would be released … Read more

UK Prime Minister Liz Truss defends tax cuts and promises to go ahead

UK Prime Minister Liz Truss announces a financial package to help people with energy bills. Dan Kitwood/Staff/Getty Images LONDON (AP) — British Prime Minister Liz Truss on Thursday defended fiscal policies announced last week that have thrown U.K. markets into chaos, saying the country had been on a “better trajectory.” Speaking in a round of … Read more

IMF delivers damning verdict on Britain’s tax cuts

New economic measures put in place by the UK government “are likely to increase inequality,” according to a spokesperson for the International Monetary Fund. Yuri Flu | Reuters LONDON — New economic measures put in place by the UK government “are likely to increase inequality,” the International Monetary Fund said in a rare statement. While … Read more

UK lenders halt mortgage deals to customers after market chaos

Britain’s currency and bond markets have been in turmoil since Finance Minister Kwasi Kwarteng announced his “mini-budget” on Friday. Olive Scarf | Getty Images News | fake images LONDON – British lenders Virgin Money, Halifax and Skipton Building Society withdrew some of their mortgage deals to clients after the tumult in British bond markets. Virgin … Read more

The ‘real cure’ for inflation has been ignored, says Steve Forbes

Sterling fell to a record low on Monday morning in Asia, following last week’s announcement by the new UK government that it would implement tax cuts and investment incentives to boost growth. By focusing on raising interest rates to cool inflation, central banks and governments have overlooked the importance of keeping currencies stable, said Steve … Read more

British Pound Hits All-Time Low Against Dollar as Asia-Pacific Currencies Weaken Too

Critics say such economic measures will disproportionately benefit the wealthy and could see the UK take on high levels of debt at a time of rising interest rates. “[It] It doesn’t look like the UK government is throwing a bone at the market here in terms of having a much more dovish fiscal path, so … Read more

Britain’s shake-up towards Reaganomics gets a thumbs up from markets

Truss has now set the country on an economic path completely at odds with most, if not all, of the major global economies. Hannah MacKay | Reuters LONDON — Britain’s new Prime Minister Liz Truss may have talked a lot about the “leakage economy” during her election campaign this summer, but no one could have … Read more

Citi says sterling dollar peg possible as UK risks currency crisis

A trader, center, wears a Citigroup jacket as he works on the floor of the New York Stock Exchange. Michael Nagle | Mayor Bloomberg | fake images LONDON – The UK is at risk of a currency crisis that could see the pound sterling reach parity with the dollar, according to analysts at Citi. The … Read more

British Pound Plunges, Bonds Plunge After Tax Cut Announcement

The British pound hit its lowest level since July 1, 2020. Matt Cardy | fake images The embattled pound sterling fell 2.5% against the dollar on Friday, after the new UK government announced a sweeping economic plan in a bid to boost growth. Sterling had fallen as low as $1.0975 by 3:35pm London time, extending … Read more