This article was published In The Quint on October 14 2022.
The United Kingdom’s economy was left in disarray after Prime Minister Liz Truss and her chancellor of the exchequer, Kwasi Kwarteng, announced a £45 billion tax cuts package as part of the new Conservative government’s “Growth Plan.”
Following the announcement, the pound collapsed and the London stock market, Financial Times Stock Exchange (FTSE), also called Footsie, went into free fall.
Kwarteng was later forced to reverse part of the tax cuts, announcing that the government would not go ahead with the abolition the 45 percent top tax rate for high earners. The 45 percent tax rate was to be abolished from 6 April 2023, according to Truss-Kwarteng’s “Growth Plan.”
While some hoped that the consequences would also be reversed to some extent, the damage was already done..