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United Kingdom

In reply to the discussion: Liz Truss has resigned [View all]

muriel_volestrangler

(102,633 posts)
10. She sacked the non-political head of the Treasury, then said she'd make radical tax changes
Thu Oct 20, 2022, 08:29 AM
Oct 2022

such as abolishing the top 45% tax rate (so the richest would just pay the 40% rate below that). But she didn't want the Office for Budget Responsibility, set up to be an independent assessor of government finances, to assess what this (and her solution for the high energy costs) would do to government finances. So the money markets took a look, and reckoned the government was now a dodgy thing to lend to, and demanded more interest (which then meant personal mortgage rates went up too). That higher interest also nearly caused pension companies to go bust - higher interest meant the existing government bonds they held were worth less. So the Bank of England had to intervene to stop a crash.

Paul Krugman dubbed this the "moron risk premium" - markets demanded a premium to lend to the UK because it has morons in charge.

She binned the plan to abolish the 45% rate, then sacked her political Treasury head with whom she'd cooked it up (ie threw him under the bus). The replacement, Jeremy Hunt, made her reverse most of her other proposed changes. Polling for the Tories has plummeted (one estimate was that, if a general election were held now, they'd only win about 50 out of 650 seats).

This week, Truss apparently had a shouting match with the then Home Secretary, who was in charge of immigration - Truss wanted some more, because there are low-paying jobs that aren't getting filled, and Braverman is ideologically against immigration. Braverman resigned/was fired, depending on how you look at it.

No one thinks anyone trusts Truss to run something, now. The Tories are in a few factions, which they somehow think will be able to choose a new leader who is generally acceptable amongst them. I can't see it, myself.

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Liz Truss has resigned [View all] T_i_B Oct 2022 OP
Was her direct deposit set up? SallyHemmings Oct 2022 #1
I read that they might bring back BoJo...... Lovie777 Oct 2022 #2
The head of lettuce out lasted Truss LetMyPeopleVote Oct 2022 #3
So, Ukrainian Americans should get out the vote. Baitball Blogger Oct 2022 #14
4 Scaramuccis? Cracklin Charlie Oct 2022 #4
I Have The Same Question.....nt global1 Oct 2022 #5
You definitely missed a lot of things. Emrys Oct 2022 #9
That's a lot for 45 days. Cracklin Charlie Oct 2022 #20
More than enough, according to concensus! Emrys Oct 2022 #21
I don't think this forum covers even half of it T_i_B Oct 2022 #27
No, indeed. Emrys Oct 2022 #28
The likes of the IEA and Tax"payers" Alliance... T_i_B Oct 2022 #29
She sacked the non-political head of the Treasury, then said she'd make radical tax changes muriel_volestrangler Oct 2022 #10
Well that was quick. calimary Oct 2022 #6
She is the British example of "everything that Trump touches dies" Murphyb849 Oct 2022 #7
I appreciate her sense of urgency to fuck up and get it over with. vanlassie Oct 2022 #18
I called it 5 days ago. Others were Tetrachloride Oct 2022 #8
I see Hunt has said he's not standing for leader muriel_volestrangler Oct 2022 #11
BBC is suggesting that a tweet says malaise Oct 2022 #13
'Mad Nad' - Nadine Dorries, a rather loopy MP who was Boris' Culture Secretary muriel_volestrangler Oct 2022 #15
Ha😀 malaise Oct 2022 #16
Tory twitter seems to be wanting Boris back T_i_B Oct 2022 #22
It's fun to watch so called conservatives across the planet prove over and over that they have malaise Oct 2022 #23
They should sneak the other Liz Truss into the job. GreenWave Oct 2022 #12
Vlad is smiling.. I wonder if he had a hand in mucking things up.. He would do it just for fun.nt mitch96 Oct 2022 #17
There has never been a more self-inflicted political defeat than this muriel_volestrangler Oct 2022 #19
"We now go live to 10 Downing Street." LetMyPeopleVote Oct 2022 #24
"...for a message from the new P.M., Ms. Hedda Lettuce!" ShazzieB Oct 2022 #25
Yes, the lettuce would be a better Prime Minister LeftishBrit Oct 2022 #26
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