The future of the UK economy under a new finance minister
British political scene has been in turmoil for the past few weeks However, the Prime Minister Theresa May seems to be capable of holding on to just one thread. In order to alleviate the financial and political crisis the prime minister had to sack Kwasi Kwarteng as her chancellor at the exchequer. The former Conservative leader William Hague has said that Truss’s leadership is hanging by a thread’, which is easy to understand why. As a way to ease market participants who are at a crossroads for nearly three weeks, Truss has canceled a portion in her controversial economic plan and removed Kwasi Kwarteng.
1. Was there a broader economic or political issue that led to Kwasi Kwarteng’s demotion?
Recent years have seen the United Kingdom has experienced an financial and political turmoil that caused the resignation of Kwasi Kwarteng. The reason for this crisis is several factors, such as the global financial crisis of 2008, the Brexit referendum of 2016 and subsequent talks to join EU. European Union. The aforementioned factors led to lower confidence levels in the UK economy and an increase in inflation as well as unemployment. The current economic crisis has forced government officials in the UK government to take some difficult measures like increasing taxes or reducing spending. These decisions have led to lower living standards and an increase in the rate of poverty.
2. Was Kwarteng’s removal and removal of the economic package a success?
The firing of Kwarteng and the ending of the economic package supposed to convince the UK the government’s seriousness in taking tough choices when confronted with uncertainty in the economy. The hope was that through these decisions, it would encourage businesses and customers to invest and spend in a new way, thereby helping boost the economy.
It is certain it is evident that Jeremy Hunt is prepared to face some hard decisions to help turn this Truss administration around. Hunt has signaled that Hunt will reverse his tax-cutting predecessor, and is likely to increase his tax revenues. It’s still early to say if this is going to be a success or not. Truss the administration. However, it’s an indication that things are getting better.