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UK finance minister defends mini-budget despite financial chaos

2022-10-01T10:12:50.715Z

After the announcement of this "mini-budget", the pound sterling hit a historic low on Monday, leading the central bank to intervene urgently.



After a week of financial market chaos, UK Finance Minister Kwasi Kwarteng defended his '

mini-budget

' of massive tax cuts, saying there was '

no other choice'

as inflation hits record highs in the UK.

On September 23 the government unveiled a series of budgetary measures combining massive aid for energy bills and tax cuts targeting the wealthiest, the dizzying cost of which has panicked the financial markets.

Of course it's an expensive procedure, but what choice did we have?

Imagine the price for the British economy of mass unemployment, a collapse in consumption and businesses going out of business

,” the Chancellor of the Exchequer tried to defend himself in the columns of the

Telegraph

on Friday evening.

Doing nothing was not an option.

The price of inaction would have been far greater than the cost of this plan.

»

Read alsoIn the United Kingdom, financial turbulence is jeopardizing the real estate market

After the announcement of the "

mini-budget

", the pound sterling hit a historic low on Monday, the International Monetary Fund asked the United Kingdom to review its copy and the central bank even intervened urgently to try to calm the situation. Thu. Latest disappointment for the government in office for barely three weeks: the rating agency Standard and Poor's revised its forecast for British sovereign debt downwards on Friday, dropping the outlook from "

stable

"

to

"

negative

" .

to maintain the “

AA

” rating.

"

We must not lose sight of our commitment to viable public finances

", wanted to reassure Kwasi Kwarteng, assuring that he would present on November 23 "

a credible plan to reduce the debt

" with "

a commitment to discipline in terms of expenses

”.

For her part, Prime Minister Liz Truss, more unpopular than ever, conceded that there had been "

disruptions

" but ruled out a reversal.

"

It's going to be a tough winter but I'm determined to do whatever it takes to help families and the economy

," she said Friday.

British households are strangled by inflation at nearly 10% and worry about whether they will be able to warm themselves or repay their mortgages this winter.

Despite the announcement of a freeze on energy price ceilings, prices have nevertheless doubled in one year.

And the announced tax cuts will first benefit the richest.

Source: lefigaro

All business articles on 2022-10-01

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