UK Emergency Talks on Budget Plans

British Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng will meet with the independent British budget watchdog on Friday.

 

The UK government is committed to reassuring financial markets after days of chaos following the planned tax cut.

Kwarteng unveiled a series of tax plans last week in a budget statement that was not accompanied by forecasts from the Office for Budget Responsibility (OBR). That caused turmoil in the markets, primarily since it was unknown how the British would pay for the plans.

The Bank of England even had to intervene with the purchase of government bonds. This protected pension funds against a partial collapse.

Critics, counting some within the ruling Conservative Party, say Truss and Kwarteng should have included forecasts from the OBR to reassure markets about where the money for the plans is coming from. The proposed tax cuts are worth around £45 billion.

On Thursday, a committee in the British Parliament urged Kwarteng to bring forward his budget statement, which includes new forecasts from the country’s budget watchdog. The announcement is still scheduled for November 23. However, Kwarteng has asked the OBR to come up with the first draft of its next economic forecast on October 7.

Leave A Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.