British pound plunges to new low as tax cuts spark concern

The British pound fell to all-time low against the US dollar early on Monday after Treasury chief Kwasi Kwarteng pledged a sweeping package of tax cuts, fuelling concerns about the government's economic policy as the United Kingdom teeters toward recession.

Opposition Labour Party economy spokeswoman Rachel Reeves said Kwarteng had "fanned the flames" of instability by talking up more tax cuts. Some Conservatives have welcomed the tax-cutting moves as a return to free-market values after years of state intervention in the economy during the coronavirus pandemic.

This program will cost £60 billion , and the government will borrow to finance it, Kwarteng said on Friday. Britain can afford the cost because its debt as a percentage of gross domestic product is the second lowest among the Group of Seven large industrial economies, Kwarteng said."Obviously, I will be setting out plans for the medium-term fiscal plan, as we're calling it, that will show that we're committed to net debt-to-GDP to be falling over time," Kwarteng said.

Australia Latest News, Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

British pound plunges to new low as tax cuts spark concernThe British pound fell to all-time low against the US dollar early on Monday after Treasury chief Kwasi Kwarteng pledged a sweeping package of tax cuts, fuelling concerns about the government&x27;s economic policy as the United Kingdom teeters toward recession.
Source: 9NewsSyd - 🏆 23. / 51 Read more »

ASX heads for sell-off as UK tax cut spooks marketsFutures put the S&P/ASX 200 1.25 per cent lower at Monday’s open, after rising recession odds sank Wall Street and the UK’s gamble with tax cuts shredded the British pound. Given US markets did turn around some 300 points before close I wonder if that will ease the downward trend at all on Monday re ASX 200
Source: FinancialReview - 🏆 2. / 90 Read more »

Sterling collapses as investors lose faithSterling plunged to a record low on Monday as investors rushed to the safety of the US dollar on worries Britain, and other economies, will tip into recession.
Source: FinancialReview - 🏆 2. / 90 Read more »

Queensland's new tax to punish interstate investors, Property Council of Australia responds | 7NEWSA new tax that will penalise people who own, or plan to buy, property in Queensland has been described as a ‘double tax’ by Australia’s largest property group. 7NEWS Queensland’s treasurer has blasted the NSW premier for indicating that he won’t hand over interstate property data to Queensland to enable him to hike land taxes for thousands of residents. “We’re going to continue down this path' - camerondickqld. 7NEWS Sounds like evil communism to me Not the first double tax you are paying and certainly not the last.
Source: 7NewsAustralia - 🏆 11. / 71 Read more »

Pound hits fresh 37-year low after mini-budget rocks marketsOdds of sterling hitting parity with dollar jump, as analysts say UK bond market ‘getting smoked’ by giveaway
Source: GuardianAus - 🏆 1. / 98 Read more »