- After Liz Truss’ resignation, what next for the UK? For one thing, a potential return of Boris Johnson.
- Britain’s Prime Minister Liz Truss inherited an economic crisis and turned it into a raging dumpster fire
- The top job for new Prime Minister Liz Truss is to lead the U.K. out of an economic nightmare
- Rishi Sunak is Britain’s third prime minister in less than two months. What are his chances of success?
- Britain’s new Prime Minister Liz Truss faces some big challenges: Brexit, Ukraine, and a rising cost of living
As he leaves, Kwarteng is assured an unhappy place in British political history: At 38 days, his was among the shortest tenures for any British chancellor. His only rival in modern times is Iain MacLeod, who died in office 30 days after being appointed finance minister in 1970.
Kwarteng’s exit might only heighten the sense of crisis now engulfing Truss’ six-week-old administration: The economic picture remains perilously fragile as the government’s accounting remains in question, and Truss herself is facing the prospect of an internal party rebellion that puts her own future as Britain’s leader in question.
Economy: Balancing the books
At the heart of the turmoil in Britain are wide-ranging tax cut proposals that, coupled with the new government’s plans to limit energy price rises for ordinary Britons, had raised a key question for economists and investors alike: How on earth was Truss going to pay for her plans?
For weeks now, both Truss and Kwarteng have insisted that the measures — dubbed by them the “Growth Plan 2022″ — would spur economic growth, which in turn would help balance the government’s books. Their logic: The revenue generated by growth would be enough to offset the costs of both the government’s proposals to cut taxes and its plans to limit sudden rises in energy bills.
But market response to the Truss government’s plans to deal with these accumulating crises has only made things worse. It is why Truss fired Kwarteng and why on Friday she also reversed a second recently announced policy, saying she would scrap a proposed tax cut for companies. The U-turn will save her government around 18 billion pounds, less than half the amount analysts say she needs to balance the books.
Politics: Truss holds on — but for how long?
Truss’ problems don’t stop with the economy.
You are now signed up for our newsletter.
- What Ramadan really means to me — and nearly 2 billion MuslimsGrid
- France protests, explained in five words: ‘Life begins when work ends’Grid
- Medical residents nationwide are unionizing. What does that mean for the future of healthcare?Grid
- Ramadan fashion hits the runways. Muslim women say it’s been a long time coming.Grid
- Who is Shou Zi Chew – the TikTok CEO doing all he can to keep his app going in the U.S.?Grid
- The SVB collapse has made deposits more valuable than ever — and banks will have to compete for themGrid
- Ukraine War in Data: 74,500 war crimes cases — and countingGrid
- Can China really play a role in ending the war in Ukraine?Grid
- ‘No Dumb Questions’: What is Section 230?Grid
- Trump steers allies and opponents on the right to a new enemy: Manhattan District Attorney Alvin BraggGrid
- World in Photos: In France, no-confidence vote and fresh protestsGrid
- Bad Takes, Episode 32: The lesson elites should have learned from IraqGrid