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Liz Truss had hoped to carve out a reputation as the new Iron Lady. Now, though, she will be seen as “highly malleable”, says Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
Streeter explains that investors will be encouraged that the ‘more reckless’ nature of Truss’s administration can be reined in, saying;
She has been manipulated into this U-turn after senior Conservatives yesterday came out in open revolt at the Treasury’s decision to scrap the 45p tax band for the wealthy while refusing to rule out cuts to welfare for the poorest.
Admitting to a communication mistake rather than a serious policy mishap didn’t cut it. Now this embarrassing climb down, taking unfunded tax cuts off the table, which Chancellor Kwasi Kwarteng has called a distraction, will help reassure the markets a little that the more reckless nature of this new administration can be reined in by the Conservative party.
It will take time for markets to buy the message but it should ease the pressure.”
“Questions still remain and sterling will likely remain under pressure.”
Continue reading…Rolling coverage of the latest economic and financial newsPolitics Live: Truss abandons plan to abolish 45% top rate of income taxLiz Truss had hoped to carve out a reputation as the new Iron Lady. Now, though, she will be seen as “highly malleable”, says Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.Streeter explains that investors will be encouraged that the ‘more reckless’ nature of Truss’s administration can be reined in, saying;She has been manipulated into this U-turn after senior Conservatives yesterday came out in open revolt at the Treasury’s decision to scrap the 45p tax band for the wealthy while refusing to rule out cuts to welfare for the poorest.Admitting to a communication mistake rather than a serious policy mishap didn’t cut it. Now this embarrassing climb down, taking unfunded tax cuts off the table, which Chancellor Kwasi Kwarteng has called a distraction, will help reassure the markets a little that the more reckless nature of this new administration can be reined in by the Conservative party.It will take time for markets to buy the message but it should ease the pressure.”“Questions still remain and sterling will likely remain under pressure.” Continue reading…
