British Prime Minister Liz Truss dismissed the finance minister today and announced a reversal from the promised big tax cut, in an attempt to remain at the head of the government after several weeks of turmoil in the financial markets.
At a hastily called press conference, Trass said she would take steps to "reassure markets of fiscal discipline" by the British government by keeping the planned increase in corporate tax, instead of the reduction she had promised.
Today, she dismissed Kvasi Kvarteng from the post of finance minister and replaced him with Jeremy Hunt, the former head of diplomacy and health minister.
Tras is trying to "bring order" after three weeks of turmoil in the financial markets caused by the government's announcement that it will significantly reduce taxes.
The government's September 23 announcement sent the pound falling to a record low against the dollar and prompted the Bank of England to intervene to prevent the economic crisis from spreading.
In 2019, Hunt was one of the candidates for the leader of the Conservative Party, he enjoys great respect and can offer stability to the Prime Minister.
The Tras has been under intense pressure in recent weeks to revise the £43bn tax cut plan, which has sent financial markets into a frenzy.
Prominent members of the Conservative Party have publicly advised the government to revise the plan. Yesterday, the pound rose as much as 1,7 percent against the dollar, and bond markets stabilized due to expectations that Tras will revise the economic growth plan.
Tras, a supporter of a completely free market, came to power last month promising to cut taxes to spur economic growth, but her ability to deliver is in question.
There is disunity among Conservative MPs over an attempt to oust Liz Truss from the leadership of the party and the government, which would be the second change of the party's leader this year.
Last month, Tras became the head of the government and the Conservative Party, replacing Boris Johnson, who decided to step down in July after months of internal party pressure due to several scandals.
According to some reports, prominent conservatives are arranging the dismissal of Liz Trass, in which Rishi Sunak and Penny Mordant, her main rivals in the summer elections for the party leader, would jointly take over the leadership of the party. For now, however, it is unclear how this could be achieved.
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