New Finance Minister Jeremy Hunt has rejected the short budget proposed by British Prime Minister Liz Truss and former Finance Minister Kwasi Kwarteng. As a result, the question arises again, if the budget plan that Trus sat on the Prime Minister's bill with the dream of the budget, if the budget plan cannot be implemented, then what is the rationale for his being in the post of Prime Minister?
The New Finance Minister canceled almost the entire budget for the Truss, which was announced three weeks ago. Hunt said the minimum income tax remains at 20 percent, which Truss reduced to 19 percent. In his 'mini budget', Truss set a cap on electricity bills for the next two years. Hunt said yesterday that this rule will be in force until next April, not two years. After that, a decision will be taken after looking at the economic condition of that country. Apart from this, the new Finance Minister has canceled the proposal of Truss for direct exemption of Value Added Tax (VAT) for foreign tourists. As a result, the process by which foreign tourists had to apply for VAT exemption after shopping, still has to be done. BBC news.
Last Friday, British Prime Minister Liz Truss herself withdrew two proposals for a shortened budget. He had earlier announced that the corporate tax levied on industrial firms would be reduced from 25 percent to 19 percent. Apart from this, the Trust wanted to reduce the upper limit of tax from 45 percent to 40 percent for the highest taxpayers in the country. But under pressure, Truss said on Friday that in both cases, the tax cuts are not being implemented for now. After becoming prime minister, Truss, the new prime minister, and his preferred finance minister, Kwarteng, presented the short budget. As per the schedule, the full budget is scheduled to be presented on October 31. But Hunt did not want to delay anymore after receiving the responsibility of finance minister. Yesterday he presented the budget proposals in the House of Commons.
The New Finance Minister claims that these proposals will show a new direction to Britain, which is drowning in an economic crisis. British Prime Minister Liz Truss, meanwhile, admitted that his wrongdoing had damaged investor confidence and damaged his position inside and outside the party. He apologized for that.
He told the BBC, "I accept responsibility and express regret for the mistakes that have been made. I wanted to help the people by reducing fuel prices besides tackling the problem of high tax rates, but we rushed it. Truss's plans created a crisis of confidence among investors, causing the value of the pound and the price of government bonds to fall. The situation became so critical that the Bank of England was forced to intervene in the market with a £65 billion program to stimulate the market.
Meanwhile, Liz Truss has made it clear that she is not leaving the post of Prime Minister despite apologizing for the mistake.
Notable: Jeremy Richard Streynsham Hunt is a British politician serving as Chancellor of the Exchequer since 14 October 2022.
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