World: British government is making U -turn

UK PM Truss under fire as pound sinks

  UK PM Truss under fire as pound sinks The government of new British Prime Minister Liz Truss on Monday came under pressure after the pound hit a record low against the dollar following last week's huge tax-cutting budget. The pound on Monday struck an all-time low at $1.0350 before regaining some ground to stand at $1.0728 around 1115 GMT. The pound had already suffered a series of 37-year lows against the greenback this month on UK recession fears propelled by high inflation. - 'Back to 1970s' -Economist Nouriel Roubini, known for his pessimistic predictions and having anticipated the subprime crisis, said on Twitter he believed Britain was headed "back to the 1970s".

after violent criticism of its economic plans, the British government has carried out a massive U -turn. Finance Minister Kwasi Kwarteng announced on Monday morning in Birmingham not to delete the top tax rate of 45 percent for top earners.

Kwasi Kwarteng (l-r), Finanzminister von Großbritannien, Liz Truss, Premierministerin von Großbritannien, und ihr Ehemann, Hugh O'Leary, nehmen an der Jahreskonferenz der Konservativen Partei im International Convention Center teil. © Stefan Rousseau/PA Wire/dpa Kwasi Kwarteng (L-R), Finance Minister of Great Britain, Liz Truss, Prime Minister of Great Britain, and her husband, Hugh O'Leary, take part in the annual conference of the Conservative Party in the International Convention Center.

"We understood it, we listened," wrote the conservative politician in a statement published on Twitter. Previously, prominent members of the Tory party, such as ex-Minister Michael Gove and Grant Shapps, had sharply criticized and indicated the tax reliefs and enormous public debt to want to vote against it in parliament. The government had to fear a rebellion in its own party.

Kwarteng had announced the tax cuts a week ago, which should particularly benefit the richest in society. Prime Minister Liz Truss' new government wanted to boost economic growth. After the announcement of the plans financed through debts, the pound course was rushed into the basement. The British central bank was forced to step in and acquire government papers with a long term - without upper limit.

in other, also controversial parts of the business plan, Kwarteng wants to continue to hold - including tax cuts for other income groups despite an enormously high inflation.

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