Embattled, Truss admits his mistake and apologizes! Britain's new chancellor has reversed almost all of the tax cuts, and former finance minister Kwarten predicted she wouldn't last a few weeks

British Conservative MPs openly forced Palace Truss Former Finance Minister Kwarten predicted she would not last a few weeks //

Truss last week urgently replaced Chancellor of the Exchequer Kwarten, in an attempt to express that he would change fiscal policy and no longer shake market confidence with a mini-budget. New Chancellor of the Exchequer Jeremy Hunt has made a clear promise to fight inflation by raising taxes and cutting the budget, hoping to quell the domestic agitation.

But there is no turning back arrow, and even if Truss chooses to announce his return in a high profile, the "arrow" fired has caused great damage, and the mini-budget blow to her dominance continues.

On Sunday (16 October), Conservative MP Crispin Blunt became the first party member to publicly call for Truss' ouster. He said the "game" began after Truss and former Chancellor of the Exchequer Kwarten's mini-budget caused economic turmoil.

On Friday, he privately said he could form a coalition to replace Truss, two of whom are also Truss's strongest opponents in the prime minister's race.

So far, three Conservative MPs have spoken out for Truss to step down. MP Jamie Wallis said he had sent a letter to the prime minister asking her to step down.

Under the 1922 rules of the British Conservative Party backbench committee, 15% of Conservative MPs write to the chairman asking for a vote of confidence, and the committee opens a vote of confidence in the incumbent party leader.

Truss could theoretically be exempted from the program for a year. But Blunt said it would come into force if there was a strong opinion within the parliamentary party. Exactly how it will happen and under what mechanism it will be done is debatable, but it will happen.

Complaints boil over in the Conservative Party

The "nonsense" of Truss' policies over the past few weeks has severely undermined the government's credibility and further divided the Conservative Party. There is now a lot of criticism of the prime minister in the Conservative Party, and calls for stepping down are high.

Former Chancellor of the Exchequer Kwarten, who was ruthlessly dismissed, predicted on Friday that Truss would leave Downing Street within weeks, sources said.

George Osborne, the former chancellor of the Exchequer under Cameron, believes Truss is unlikely to remain prime minister before Christmas.

Conservative pollster Lord Hayward said it would be difficult for Truss to remain prime minister and the Conservatives were looking around for a successor. If the market calms down, the new prime minister will win praise; And if the unrest cannot be quelled, it will be entirely blamed on Truss.

Some relatively moderate Conservatives, while not calling for Truss's resignation, agree that the cabinet needs to be "fundamentally reset".

According to senior Conservative member Alicia Kearns, he did not want to question whether the Conservatives and Truss had the ability to remain in power, but there was no doubt that the cabinet needed to be reset.

Former Health Secretary Matt Hancock and MP Robert Halfon echoed this sentiment and called for a cabinet reshuffle as soon as possible.

There was also a lot of discussion outside the party

The Scottish Democrats say Prime Minister Truss has pushed Britain to the brink of recession and brought the housing market to near collapse, all in just a few weeks. Dismissing the incompetent Chancellor of the Exchequer will not solve the problem, and Truss must go.

The party called for more Conservative MPs to come forward and demand her resignation to end the chaos.

Labour's shadow commerce secretary, Jonathan Reynolds, criticised Truss's policies as saying he had no idea what she was doing or what he would hear about next week.

He said he would listen to the Conservatives but wanted to know where to cut the budget. Looking at what the British health system, the justice system is looking like now, how else can it be cut? The current cuts are the bitter result of the Conservative Party's previous budget efforts, entirely because of the party's incompetence.

Sir Charles Bean, former deputy governor of the Bank of England, accused the government of being dishonest in dumping the central bank, with inflation largely due to changes in the global environment and the rest a problem of government budget management. Britain is now more economically like the state of Italy or Greece.

Britain's other party, the Liberal Democrats, called out the proposal for early elections, saying the problem was not with Truss and her government, but with the entire Conservative Party. In this case, it is better to leave them all.

The party's leader, Sir Ed David, said he hoped the budget would improve the situation, but feared much damage had already been done.

Truss lost face! The new Chancellor of the Exchequer has withdrawn almost all tax cuts //

At 6 p.m. Beijing time on Monday, the newly appointed British Chancellor of the Exchequer, Jeremy Hunt, announced the latest adjustments to the Truss government's mini-fiscal proposal. Hunter "almost" completely reversed the tax cuts announced by Truss at the end of last month, and conveniently slashed the timing of the energy subsidy program.

In a video released by the British Treasury, Hunt began with a profound statement that one of the core responsibilities of any government is to do whatever is necessary to maintain economic stability. So while he and the prime minister have promised to lower tax rates, on Friday Truss heeded doubts about the mini-fiscal bill and lifted some of the tax cuts, while the finance ministry decided yesterday to make further adjustments to the mini-fiscal bill, undoing almost all of the tax measures announced in the growth plan three weeks ago.

As a result, European stock markets and US stock futures rose in unison, with GBP/USD surging more than 1% on the day.

(GBP/USD minute chart, source: TradingView)

Hunt will elaborate on the policy changes and take questions to parliament at a later date, but given the market's high sensitivity to these issues, he and the speaker agreed to release a briefing to the public first.

Two of the most critical points in yesterday's adjustment were Hunter's announcement of a "indefinite" suspension of the planned base income tax rate cut, which was originally planned to cut the base income tax rate from 20% to 19% in April next year. Hunt said he would wait until the time is right in the future to move forward with the tax cuts. At the same time, for the energy guarantee plan that locks in residents' energy bills, the duration of the project has also been cut from the two years announced by Truss to "at least until April next year."

Hunt said the prime minister and himself agree that it is not responsible to keep public finances exposed to unlimited fluctuations in international gas prices, and that the Treasury Department will study policy after next April.

In addition to shortening the relief time, the Truss government's "mini-bill" is left with some scraps that the market has not paid much attention to. Hunt said in the video that while the UK government will continue to pull back medical and social care rates and push for stamp duty reform, it will not continue to cut dividend tax rates, reverse the non-wage work reforms introduced in 2017 and 2021, new duty-free shopping schemes for non-British tourists or freeze alcohol tax rates.

Coupled with the cancellation of the top tax rate announced before Kwarten's dismissal, and the lifting of the corporate tax freeze announced by Truss last Friday, the "Truss New Deal" that triggered a violent reaction in global capital markets has been almost completely rewritten.

The Truss government is not yet out of the crisis

Although the appointment of Conservative veteran Minister Hunt has temporarily stabilized the situation, the suspicion about the position of Prime Minister Truss has not ended. Even George Osborne, Chancellor of the Exchequer under Cameron, has publicly expected Britain to have a new prime minister before Christmas.

Even on Monday Sky News has invoked the odds to deduce who has the best chance of becoming the next British prime minister after Truss is gone.

Looking at current market odds, the new Chancellor of the Exchequer and "the most powerful in the current government" Jeremy Hunt, who made it to the final round of the 2019 Conservative election but lost to Boris Johnson, is in the lead. They are followed by Sunak and Penny Mordaunt, who ranked second and third in this year's party leadership election. Boris Johnson, who was compared to Cincinnatus (Roman consul who rose again after returning to the field), and the low-key defense secretary Wallace are also considered likely to challenge.

Embattled Truss admits his mistake and apologizes //

On the evening of Monday (October 17) local time, British Prime Minister Truss apologized to the senators in a meeting with some Conservative MPs, saying that his government had made mistakes in the formulation of the "mini budget". Truss's press secretary told reporters that Truss thought he had "wanted to do too much and was too hasty" and apologized for it.

Truss said in a media interview: "I am willing to take responsibility and apologize for the mistakes I made. "She insisted she would lead the Conservatives to the next general election and stayed because I was chosen to serve the country.

Earlier in the day, the newly appointed British Chancellor of the Exchequer, Jeremy Hunt, announced the latest changes to the Truss government's mini-fiscal package, and Hunter "almost" completely reversed the tax cuts announced by Truss at the end of last month. The decision was welcomed by investors, but it left Truss's economic agenda in pieces.

Truss argued that her more than one-month term as prime minister was "not perfect," but she "corrected" her mistakes. She also said that if you don't change course, it's irresponsible.

She said she remained committed to boosting the UK's economy, but acknowledged it would take longer to materialize.

Truss said she was willing to take responsibility for "going too far, too fast" and that she wanted to "apologize for the mistakes made." "I do think it's a sign of an honest politician who would say: Yes, I made a mistake. I've fixed this bug. Now we need to serve people. ”

The embattled Truss is fighting to defend his premiership, and a number of senior Conservative MPs met privately that day to discuss how and when to remove Truss. Although according to party rules, no formal challenge to the leader of the Conservative Party can be made during the prime minister's term of office.

Moreover, if Truss is dismissed, there is little agreement on who will take her place. Several lawmakers have publicly called for her resignation, and the media is counting the days that Truss can remain prime minister for a few days. Even speculation has begun about who has the best chance of becoming the next British prime minister.

According to the British Daily Telegraph, senior British Conservative Party sources said late in the same day that Graham Brady, chairman of the 1922 committee, is expected to meet with Truss in the next 36 hours to convey the concerns of Conservative backbenchers about the turmoil of recent days, which will be his second meeting with the prime minister this week. Downing Street insisted the meeting was nothing more than a pre-planned routine reciprocity, but that the meeting was taking place against the backdrop of mutiny, which would fuel speculation.

And late Monday night, officials of the 1922 Commission held a meeting and decided that there was no need to change the current rules preventing a new vote of no confidence in the prime minister until next September.

This article is from Cailian