Truss forced into U-turn on tax after week of market turmoil

[Scott]

BIRMINGHAM, England, Oct 3 (Reuters) - British Prime Minister Liz Truss was forced on Monday into a humiliating U-turn after less than a month in power, reversing a cut to the highest rate of income tax that helped spark turmoil in financial markets and a rebellion in her party.

Finance minister Kwasi Kwarteng said the decision had been taken with "humility and contrition", after some lawmakers reacted with fury to suggestions that public and welfare spending could be cut to fund tax cuts for the richest.

Elected by party members but not the broader public, Truss and Kwarteng are seeking to jolt the economy out of its decade of stagnant growth with a 1980s-style plan to cut taxes and regulation, all funded by vast government borrowing.

https://www.reuters.com/world/uk/uks-truss-kwarteng-forced-into-humiliating-tax-u-turn-2022-10-03/

[Chomper Higgot]

Also of note, and it is no small matter.

 

In the run up to this U-Turn the Tory Party Chair Jake Berry threatened backbenchers that if they don’t support the PM on the Budget, they’d have the ‘whip removed’.

 

The PM then U-turned.

 

So threatening Tory MPs to support the newly minted PM isn’t working.

 

How long before the whole mess collapses?

 

 

[BritManToo]

2 minutes ago, Chomper Higgot said:

Also of note, and it is no small matter.

 

In the run up to this U-Turn the Tory Party Chair Jake Berry threatened backbenchers that if they don’t support the PM on the Budget, they’d have the ‘whip removed’.

 

The PM then U-turned.

 

So threatening Tory MPs to support the newly minted PM isn’t working.

 

How long before the whole mess collapses?

 

 

The problem being there are no suitable candidates (or party) to run the UK.

Labour are a total disaster, maybe even worse than the Tories.

[Chomper Higgot]

10 minutes ago, BritManToo said:

The problem being there are no suitable candidates (or party) to run the UK.

Labour are a total disaster, maybe even worse than the Tories.

Opinion polls suggest the public do not agree with you.

[hotandsticky]

1 minute ago, Chomper Higgot said:

Opinion polls suggest the public do not agree with you.

LOL!  Everything is great with Labour - the opinion polls tell us it is so! 

 

 

If you are pinning your hopes on opinion polls be prepared for disappointment.

 

 

I imagine that you are not a stranger to disappointment.

[James105]

2 minutes ago, Chomper Higgot said:

Also of note, and it is no small matter.

 

In the run up to this U-Turn the Tory Party Chair Jake Berry threatened backbenchers that if they don’t support the PM on the Budget, they’d have the ‘whip removed’.

 

The PM then U-turned.

 

So threatening Tory MPs to support the newly minted PM isn’t working.

 

How long before the whole mess collapses?

 

 

She is an idiot.  There is 2 years before the next election so there was no need to panic, and she has demonstrated that once again, the PM can be controlled by media hysteria.   The Tories complaining about tax cuts are in the wrong party as cutting taxes is a bread and butter Conservative policy.   

[Chomper Higgot]

Just now, hotandsticky said:

LOL!  Everything is great with Labour - the opinion polls tell us it is so! 

 

 

If you are pinning your hopes on opinion polls be prepared for disappointment.

 

 

I imagine that you are not a stranger to disappointment.

I’m quite sure opinion polls had an impact on the decision by Tory backbenchers to oppose the   Budget and thereby force the PM into a U-turn.

 

 

[hotandsticky]

2 minutes ago, Chomper Higgot said:

I’m quite sure opinion polls had an impact on the decision by Tory backbenchers to oppose the   Budget and thereby force the PM into a U-turn.

 

 

 

The opinion of the IMF was a far bigger factor!

[Chomper Higgot]

2 minutes ago, James105 said:

She is an idiot.  There is 2 years before the next election so there was no need to panic, and she has demonstrated that once again, the PM can be controlled by media hysteria.   The Tories complaining about tax cuts are in the wrong party as cutting taxes is a bread and butter Conservative policy.   

I don’t dispute she’s an idiot, but she does at least understand when she’s onto a loser.

 

The press are a vital part of democracy, and here we see precisely how they can help hold Government to account.

 

[JonnyF]

38 minutes ago, Chomper Higgot said:

The U-Turn came about because Tory Back Benchers were threatening to vote against the Budget, they were making this threat because their own seats are at risk as a result of the negative view the public have of the budget.

 

Interestingly, the day before the U-turn Truss stated in an interview that the cut to the 45% tax rate was Kwarteng’s idea.

 

Soccer fans will recognize the progression of ‘The player has my full support’, swiftly morphing into ‘that was his mistake’.

 

The rest of the Budget is still a damaging mess.

 

 

 

You clearly don't watch much "Soccer" (or "Football" as it's called in the place that invented the game). Maybe you are referring to the board backing the manager before he is sacked, but either way it's a very strange analogy for the current situation.

 

While I believe it was a mistake for Truss to U-Turn, the fact that this rather insignificant part of the budget took so much attention away from the rest of it is very interesting. I can't help wonder if this announcement on the 45% rate was diversionary as the rest of the very Conservative budget has largely been ignored by the left wing MSM and the extreme leftists. Labour MP Rupa Huq's shocklingly racist comments at the Labour party conference (and subsequent apology) were also useful in deflecting from the main body of this budget, which thankfully remains unchanged. 

[Chomper Higgot]

2 minutes ago, hotandsticky said:

 

The opinion of the IMF was a far bigger factor!

So why the chief whip threatening Tory backbenchers?

 

Why was the PM sticking to the cut right up to hours before it was removed?

[JonnyF]

11 minutes ago, Chomper Higgot said:

Opinion polls suggest the public do not agree with you.

Opinion polls suggested Britain would remain in the EU.

[SunnyinBangrak]

Not a follower of UK politics, but I believe the Goldsmith family are non royal Royalty, and credible sources. If what young Ben wrote here is true, then it shows the usual overreaction at top volume from the left to the 45% tax band removal. Truss, as a new PM should learn to NEVER cave in to the chronically uninformed that parrot blindly the msm narrative de jour.

 

From Ben Goldsmith's official Twitter page

 

"Estimated cost to the UK gov of: -

trying to stop Covid: £360 bn -

supporting energy bills: £150 bn -

increase in NHS core funding 2019-23: £25 bn -

reversing NI hike: £12 bn per annum -

cutting basic rate of income tax to 19%: £5 bn -

removing 45% top rate of income tax: £2 bn"

 

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Estimated cost to the UK gov of:<br>- trying to stop Covid: £360 bn<br>- supporting energy bills: £150 bn<br>- increase in NHS core funding 2019-23: £25 bn<br>- reversing NI hike: £12 bn per annum<br>- cutting basic rate of income tax to 19%: £5 bn<br>- removing 45% top rate of income tax: £2 bn</p>&mdash; Ben Goldsmith (@BenGoldsmith) <a href="https://twitter.com/BenGoldsmith/status/1574655627313438720?ref_src=twsrc%5Etfw">September 27, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

[Chomper Higgot]

1 minute ago, JonnyF said:

You clearly don't watch much "Soccer" (or "Football" as it's called in the place that invented the game). Maybe you are referring to the board backing the manager before he is sacked, but either way it's a very strange analogy for the current situation.

 

While I believe it was a mistake for Truss to U-Turn, the fact that this rather insignificant part of the budget took so much attention away from the rest of it is very interesting. I can't help wonder if this announcement on the 45% rate was diversionary as the rest of the very Conservative budget has largely been ignored by the left wing MSM and the extreme leftists. Labour MP Rupa Huq's shocklingly racist comments at the Labour party conference (and subsequent apology) were also useful in deflecting from the main body of this budget, which thankfully remains unchanged. 

The U-turn was an embarrassing defeat for the PM.

 

Gone is her claim to competence and effectiveness.

 

The lady is for turning.

 

As you mentioned earlier, this thread isn’t about Trump, it’s not about Labour either.

[JayClay]

29 minutes ago, BritManToo said:

Labour are a total disaster

Which of their policies do you disagree with, in particular?

 

Creating a national energy company focusing on 100% renewable sources which, for the first time in history, are now cheaper than fossil fuels (and significantly so)?

 

Freezing energy bills by using windfall profits from energy companies?

 

Bringing rail back into public ownership by not renewing service contracts as they expire?

 

Refunding the NHS and schools?

[JonnyF]

8 minutes ago, Chomper Higgot said:

The U-turn was an embarrassing defeat for the PM.

 

Gone is her claim to competence and effectiveness.

 

The lady is for turning.

 

As you mentioned earlier, this thread isn’t about Trump, it’s not about Labour either.

Whilst the U-Turn was a mistake, it is not as significant as you are implying/hoping.

 

Politicians often make U-Turns, it's old news within a couple of weeks. It's a couple of years until the next General Election. Keep hanging your hat on those opinion polls, even if correct they'll be 2 years out of date by the time of the election.  

[Chomper Higgot]

1 minute ago, JonnyF said:

Whilst the U-Turn was a mistake, it is not as significant as you are implying/hoping.

 

Politicians often make U-Turns, it's old news within a couple of weeks. It's a couple of years until the next General Election. Keep hanging your hat on those opinion polls, even if correct they'll be 2 years out of date by the time of the election.  

The authority of the newly minted PM has been undermined.

 

Spin it anyway you want, that is significant.

[JonnyF]

5 minutes ago, Chomper Higgot said:

The authority of the newly minted PM has been undermined.

 

Spin it anyway you want, that is significant.

She got through 99% of her budget. She will be judged on the results of that budget and her other policies over the next couple of years, the U-Turn on the tax cut will be quickly forgotten.

[Chomper Higgot]

2 minutes ago, JonnyF said:

She got through 99% of her budget. She will be judged on the results of that budget and her other policies over the next couple of years, the U-Turn on the tax cut will be quickly forgotten.

The Budget hasn’t yet been voted on.

 

She is already being judged on the results of announcing this budget.

 

Voters are already receiving notice of interest rate rises.

 

There is worse to come.

[placeholder]

54 minutes ago, JonnyF said:

Opinion polls suggested Britain would remain in the EU.

Actually opinion polls were running very close on the question and well within the margin of error. It was just pundits who were opining mostly that the brexit vote would fail.

[JonnyF]

1 minute ago, placeholder said:

Actually opinion polls were running very close on the question and well within the margin of error. It was just pundits who are opening mostly that the brexit vote would fail.

How accurate were the polls from 2014, 2 years before the vote?

[Bluespunk]

10 hours ago, Scott said:

British Prime Minister Liz Truss was forced on Monday into a humiliating U-turn

Quelle surprise…and more to come it seems. 

“Paul Johnson, the director of the IFS, said there would still need to be a significant cut to spending in order to balance the books. “Unless he also U-turns on some of his other, much larger tax announcements, he will have no option but to consider cuts to public spending – to social security, investment projects, or public services,” Johnson said.”

 

https://www.theguardian.com/politics/2022/oct/03/tory-mps-plot-to-avert-welfare-squeeze-after-u-turn-on-top-rate-of-tax-kwasi-kwarteng?CMP=Share_iOSApp_Other
 

 

[placeholder]

10 minutes ago, JonnyF said:

How accurate were the polls from 2014, 2 years before the vote?

https://fullfact.org/europe/what-does-british-public-think-about-europe/

[BritManToo]

1 hour ago, JayClay said:

Which of their policies do you disagree with, in particular?

 

Creating a national energy company focusing on 100% renewable sources which, for the first time in history, are now cheaper than fossil fuels (and significantly so)?

 

Freezing energy bills by using windfall profits from energy companies?

 

Bringing rail back into public ownership by not renewing service contracts as they expire?

 

Refunding the NHS and schools?

Past experience tells me once in power they will forget all their promises, bow to corporate greed, and join America in wars against 3rd world countries.

 

Renewable energy?

Wind farms are ugly and cause noise pollution, the used blades all end up in landfill, and there's not much point in solar in the UK. The sensible option would be to build a load of nuclear power stations. But there's no party with any sense.

[placeholder]

11 minutes ago, BritManToo said:

Past experience tells me once in power they will forget all their promises, bow to corporate greed, and join America in wars against 3rd world countries.

 

Renewable energy?

Wind farms are ugly and cause noise pollution, the used blades all end up in landfill, and there's not much point in solar in the UK. The sensible option would be to build a load of nuclear power stations. But there's no party with any sense.

It should be pointed out that the Conservatives were more enthusiastic backers of the 2nd iraq war than was Labour or the Lib Dems.

And the Conservatives are now backing the war in Ukraine more enthuisiastically as well. I think that's a good thing but it hardly supports your argument.

 

As for wind farms being ugly...that's an aesthetic judgement. Even if the noise pollution was serious (it isn't) how does that compare to the air pollution generated by fossil fuels? Actually wind turbine blades are now being recycled.

 

Apart from its other drawbacks, electricity generated from nuclear power plants is very, very costly.

[placeholder]

2 hours ago, JayClay said:

Which of their policies do you disagree with, in particular?

 

Creating a national energy company focusing on 100% renewable sources which, for the first time in history, are now cheaper than fossil fuels (and significantly so)?

 

Freezing energy bills by using windfall profits from energy companies?

 

Bringing rail back into public ownership by not renewing service contracts as they expire?

 

Refunding the NHS and schools?

And what about deprivatizing water? Not only have rates shot up after privatization, but pollution has skyrocketed. Huge stretches of British beaches are off limits because of pollution. The only water company with a good record on this happens to be the only one not privatized. It's in Scotland.

https://www.labour.org.uk/wp-content/uploads/2018/09/Conference-2018-Water-pamphlet-FINAL.pdf

[Mavideol]

saw that 2 days ago and forgot to post, 

Truss Should Resign as UK Prime Minister, More Than Half of Britons Say

https://finance.yahoo.com/news/truss-resign-uk-prime-minister-152618804.html

[Mavideol]

7 hours ago, BritManToo said:

The problem being there are no suitable candidates (or party) to run the UK.

Labour are a total disaster, maybe even worse than the Tories.

you may be surprised by Labour, should let them try  555

[Mavideol]

6 hours ago, Bluespunk said:

Quelle surprise…and more to come it seems. 

“Paul Johnson, the director of the IFS, said there would still need to be a significant cut to spending in order to balance the books. “Unless he also U-turns on some of his other, much larger tax announcements, he will have no option but to consider cuts to public spending – to social security, investment projects, or public services,” Johnson said.”

 

https://www.theguardian.com/politics/2022/oct/03/tory-mps-plot-to-avert-welfare-squeeze-after-u-turn-on-top-rate-of-tax-kwasi-kwarteng?CMP=Share_iOSApp_Other
 

 

sacrebleu then  555

[metisdead]

An off topic post trolling about Trump and the replies have been removed.

 

Off topic posts and replies about Blair and the war in the middle east have been removed.