Prime Minister Liz Truss Prime Minister Liz Truss yesterday gambled the entire British economy on an explosive tax revolution to boost growth and kill inflation.
her chancellor, Quasi Quartengstunned MPs and city moneymen with a major spending crisisbudgetwiping away decades of hesitation, stagnation and decay.
This was the beginning of a new era of Trussonnomics and the end of 12 years of timid Tory rule. A senior Tory MP said, “It’s sh*t or bust.”
Markets cautiously watched as Quarteng tore Gordon Brown’s hateful 45p highest tax rate, base rate reduced to 19pscrapped corporate tax increases and lowered stamp duties.
He confirmed £150 billion in domestic and business energy cost savings, limit household bills to £2,500.
This will cut inflation by five percent and lower the cost of index-linked pensions, social security and other mandatory government spending.
He canceled duty walks on drinkIR35 fines for the self-employed abolished and benefit rules changed.
He ushered in dozens of business zones and took a chainsaw into the EU bureaucracy, telling gaping Labor MPs after each announcement: “I’ve got another one.” It was the biggest tax revolution since 1988.
Labor wanted to know where the money came from.
They are now in the nasty position of having to say they will reverse Kwarteng’s actions.
He hopes lower taxes meanwhile will encourage investment in UK plc. Ministers hope that his steps before the 2024 elections will bear fruit.
Julian Jessop, of the Institute of Economic Affairs, called his shakeup “a risk worth taking”. He added: “There are no easy options.”
As a Tory legend Margaret Thatcher would say, “There is no alternative.”
