BRITAIN – The new British Finance Minister Jeremy Hunt on Saturday criticized the “mistakes” of the Liz Terrace administration in his first interview since he took office, indicating that some taxes will increase, while government spending will increase less than what was planned in advance, warning of the need to make difficult decisions to restore Britain’s fiscal policy credibility.
In an effort to maintain her political position after 40 days in office, Prime Minister Liz Terrace Koasi Kawarting eliminated the position of Minister of Finance on Friday and shelved some of their contentious economic plans.
To abandon its promise to keep business tax at the existing levels, the terrace announced the rise in tax.
Hunt stated that it is expected to announce tax rises even though the significant tax savings were a key component of the original terrace plans.
Hunt acknowledged that painful decisions would need to be made, but he disclaimed that the UK was about to enter another period of austerity.
“The thing that people and markets want and the country now needs is stability. Markets cannot be controlled by a minister.
But I can demonstrate that we can pay our taxes and stick to budgets, even though doing so would necessitate making some extremely painful choices regarding both expenditure and taxes “.
He went on, “Due to the need for all government departments to improve their competencies more than they had anticipated, spending won’t increase as much as people would like. Some taxes will not be reduced by the speed that people want, and some taxes will increase. It will be challenging.
” A new financial policy announced by Quarting on September 23 sparked a violent reaction in the financial markets to the point that the Bank of England had to intervene to protect pension funds from falling into chaos with the high borrowing costs.
Hunt stated that while he agreed with Terrace’s fundamental strategy for attempting to spur economic growth, the way she and Quarting implemented it failed.
The Prime Minister’s office could be further endangered by any additional changes to the cabinet, since some senior deputies anticipated that they would find it difficult to survive the current crisis.
A seasoned deputy was quoted on the Financial Times website as saying, “There is no sense in her initiative or presidency at this moment; it seems that it has already ended.”
Another senior Conservative legislator said that Graham Brady, the chairman of the 1922 committee of the parliament’s representatives, would be forced to take action when the discussion of Tarras’s standing as speaker “critical point in the very near future.”
With increasing government spending, the incoming British finance minister is probably going to hike taxes.
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