U.K. Government Abandons Plan to Cut Rate of Income Tax for Top Earners

U.K. Chancellor of the Exchequer scrapped Truss's key economic policy, following the slide in the UK currency's value, turmoil in the country's financial markets, and the threat of large scale rebellion within Truss's party.

Will this be known as the Truss Doctrine? Release a new economic policy on a weekly basis, and see if it sticks?

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Burnley123 · 41-45, M

They are sticking with most of the plan but yes, this was an embarrassing u-turn, as we call it.

The pound is still at a low level, the economy generally is struggling and a fresh round of major austerity is heading our way.

In a political sense, Truss still has a lot of problems because her credibility has been badly damaged. She climbed down only after realising that she probably wouldn't get the policy through Parliament, a quite shocking state of affairs given Tory MPs have a big majority.

I think it's unlikely she will last two years until the next general election. Tory backbench MPs now know they can overturn her policies and the party itself is divided. The cost of living crisis here is getting worse and I just don't see how Truss can recover.

PicturesOfABetterTomorrow · 41-45, M

@Burnley123 Yikes. Even the IMF has publicly published reports on how austerity is a total failure.

Burnley123 · 41-45, M

@PicturesOfABetterTomorrow

Even the IMF

Yes because they are pragmatic managers of neoliberalism, or at least are in the first world. Truss and Kwarteng are incompetent ideologues.

Austerity is being implemented here by doing nothing. With looming benefit freezes and pay freezes. Inflation at 10% means a real-time cut. Austerity is the only way that they can make their sums almost kind of add up. Though of course, it's economically illiterate and morally awful. Cameron and Osborne cut service to the bone anyway. To go even further will be brutal.

PicturesOfABetterTomorrow · 41-45, M

@Burnley123

Burnley123 · 41-45, M

@PicturesOfABetterTomorrow Yeah but they are also NOT balancing the budget!

PicturesOfABetterTomorrow · 41-45, M

@Burnley123 Very true. It was mostly just a comment on how Tories across the commonwealth seem to see running a country as nothing more than quarterly reports and cost/benefit analysis and who cares about what happens outside the financial reports.

PicturesOfABetterTomorrow · 41-45, M

@Burnley123 Reminds me of CEOs who have no idea how their own company actually functions.

Burnley123 · 41-45, M

@PicturesOfABetterTomorrow Yes, that was very much what the Cameron govt was like. The Truss regime ignores those reports because they believe that the free market will always deliver eventually.

PicturesOfABetterTomorrow · 41-45, M

@Burnley123 Yikes. Those almost mystical aspects of American hyper capitalist mentality is not something I am used to seeing outside a niche south of our border.

Burnley123 · 41-45, M

@PicturesOfABetterTomorrow It's very much like the Republicans