Kwarteng accused of reckless mini-budget for the rich as pound plummets

  • 📰 GuardianAus
  • ⏱ Reading Time:
  • 62 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 98%

Australia Headlines News

Australia Latest News,Australia Headlines

Strategy of sweeping tax cuts gets hostile reception from markets and economic thinktanks, leaving some Tory MPs aghast

Kwasi Kwarteng has been accused of delivering a reckless mini-budget for the rich after his £45bn tax-cutting package sent the pound crashing to its lowest level against the dollar in 37 years.

The Treasury admitted there were no forecasts for the impact of the measures on growth and the gamble received a hostile reception not just from the markets and opposition politicians, but from economic thinktanks and many Tory MPs, some of whom were aghast. The Resolution Foundation said the measures – including the energy support packages for households and businesses – would involve an extra £411bn of borrowing over five years. The thinktank said the tax cuts were heavily skewed in favour of the better off, pointing out that someone earning £1m a year would gain £55,220 a year while someone on £20,000 would gain just £157.

Despite Kwarteng’s pledge that the government would be financially responsible, investors were alarmed by the scale of the borrowing needed to cover his tax cuts and spending pledges – and by the prospect of much higher interest rates from the Bank of England. The financial markets are anticipating Threadneedle Street will more than double interest rates from their current level of 2.25% by next spring.

In her reply, Reeves said the government was “gambling the mortgages and finances of every family in the country to keep the Tory party happy”.

Source: Financial Digest (financialdigest.net)

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 1. in AU

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.

Tory backbenchers despair at ‘toxic’ mini-budgetDivisions of leadership contest return to the fore as some MPs criticise extra borrowing to pay for tax cuts
Source: GuardianAus - 🏆 1. / 98 Read more »

‘Everything is broken because of 12 years of Tory government’ – why can’t Starmer just say it? | Zoe WilliamsAhead of party conference, the talk is of singing the national anthem. But that’s Labour, always fighting yesterday’s battles, says Guardian columnist Zoe Williams Problem is while he is a smart legal man he has no charisma
Source: GuardianAus - 🏆 1. / 98 Read more »

If you are poor, it’s time to ask yourself: have you thought of simply being rich? | Marina HydeKwasi Kwarteng’s tax-slashing mini-budget is the latest masterstroke in Liz Truss’s quest ‘to be unpopular’, says Guardian columnist Marina Hyde It's called getting a job , alot out there Well you must admit she is just doing the bidding of the wealthy, brexit supporting, tax avoiding, country destroying people. I mean can you blame her really? TheRealBarnzey
Source: GuardianAus - 🏆 1. / 98 Read more »

Mini-budget 2022: chancellor Kwasi Kwarteng to unveil tax cuts as Labour calls it ‘another zigzag on path of policy failure’ – livePredictions today’s fiscal event – expected at 9.30am – could be biggest package of tax cuts since 1988 Truss is doing exactly what she promised the folk who voted for her. Trouble is that they were Conservatives zealots, some of whom are non-uk voters. The rest of the UK electorate has had no chance to vote on this experiment. UKLabour LibDems
Source: GuardianAus - 🏆 1. / 98 Read more »

Tory backbenchers despair at ‘toxic’ mini-budgetDivisions of leadership contest return to the fore as some MPs criticise extra borrowing to pay for tax cuts
Source: GuardianAus - 🏆 1. / 98 Read more »

Jacob Rees-Mogg in line for potential windfall from sale of Somerset CapitalSale of investment firm business secretary co-founded could result in multi-million pound payout I assume he's selling to Russian Oligarchs 😂.
Source: GuardianAus - 🏆 1. / 98 Read more »