UK’s finance minister under pressure as country faces tough decisions
British political scene is in turmoil over these past couple of weeks however, Prime Minister Theresa May seems to be in control by only one thread. To ease the economic and political crisis and to improve her standing, she was forced to dismiss Kwasi Kwarteng as her chief of staff at the Treasury. William Hague, a former Conservative leader, said that Trussher leadership is hanging on a thread’. It’s easy to comprehend why. In order to calm the financial markets that have been under the hammer for the past three weeks, Truss has slashed portions from her controversial economic strategy and dismissed Kwasi Kwarteng.
1. Did there exist an economic or political crisis that led to Kwasi Kwarteng’s dismissal?
The United Kingdom experienced an economic crises and political turmoil during the last few years. The result was Kwasi Kwarteng’s dismissal. The financial crisis that hit the world in the years 2008 and 2016, as well in the Brexit referendum that followed and triggered the crisis, all caused this current crises. The result was a decrease in optimism about the economy of Britain as well as a rise in unemployment and inflation. The current economic crisis has forced government officials in the UK government to adopt drastic measures, like increasing taxes or reducing spending. The result is the rise in poverty as well as an increase in living standards.
2. Was Kwarteng’s dismissal and the demise of the economic package an achievement?
Kwarteng’s dismissal and the conclusion of the economic package intended to demonstrate to the UK the government’s seriousness in taking tough choices when confronted with uncertainty in the economy. The hope was that these decisions would encourage consumers and companies to invest and expand their spending in order to boost the economy.
A Short Summary
It’s clear it is evident that Jeremy Hunt is willing to make difficult choices to help save his administration from the Truss administration. Hunt has indicated that the tax cuts he cut will be reversed by his predecessor, and is likely to increase his tax revenues. It’s too early to determine if it will be a success or not. Truss the administration. However, it’s an indication that things are getting better.