What problems did the UK economic crisis cause for Liz Truss, the new UK PM?
What is the reason for increasing internal party criticism of Liz Truss?
What do the latest poll results show Liz Terrace’s popularity?
What are the reasons for the criticism of the Liz Truss tax plan?
The latest polls show that incoming UK Prime Minister Liz Truss has not yet arrived because of her controversial economic plan, with the worst poll result for a Conservative prime minister since 2010 and a majority of citizens calling for her to step down. Liz Truss’ popularity decline at the beginning of her prime ministership will be troublesome for her.
The troubles of the UK economic crisis for Liz Truss
Liz Truss’ popularity decline is due to the economic crisis in the UK. The issue of fighting the financial crisis is one of the biggest crises facing Liz Truss, the newly appointed Prime Minister of the UK, which has caused many problems for her since the beginning of her work. Liz Truss, UK’s new prime minister, is trying to contain the damage after the pound weakened due to her borrowing plans. Truss admitted to the BBC a few days ago that he should have done more to prepare the ground for his economic project.
In-party criticism of Liz Truss
However, the Truss still supports a package that provides tax breaks and massive national debt relief. Truss still wants to stick to these plans. At the beginning of the Congress of the conservative party, Truss had to endure criticism from the people and even from within his ranks. Liz Truss’ popularity decline has led to increased criticism of her within the party.
The results of the latest polls
The Liz Truss’ popularity decline has also shown itself in the polls. In a recent survey by Opinium for the Observer, Truss’s approval rating among Britons fell from -9 to -37 in a week – lower than former prime minister Boris Johnson’s approval rating, the agency said, shortly before he was forced to resign (-28).
Liz Truss’ worst position in the polls
James Crouch, head of policy and public affairs at Opinium, called the poll the worst poll result for a Conservative prime minister since 2010. Within weeks, the approval rating for Truss was as high as that of Johnson or Theresa May, the former prime minister at the end of her term. Another poll by polling firm YouGov found that more than half of Britons (51 percent) want Truss to resign. Liz Truss’s declining popularity has left her in the wrong position in the polls.
Conservative resistance to the Liz Truss plans
At the party’s four-day conference in Birmingham, Truss will have to convince her party members of her plans, as resistance is growing there too. Michael Gove, the former UK secretary of state, criticized the BBC for the tax plans of the Truss government, which sent shock waves through the British financial markets during the week. It is reported that some conservatives are considering voting against these plans in parliament.
The reasons for the criticism of the Liz Truss tax plan
The Truss Growth Plan, unveiled about a week ago, has been criticized for providing billions in additional costs, but there are few details on how it will be funded in the short term. According to experts, these measures could cost approximately 230 billion euros. Chancellor of the Exchequer, Kwasi Kwarteng, also refused to provide details about this. In an article for the Telegraph, he only confirmed that he would present a credible debt relief plan in November.
UK government debt outlook
Liz Truss’ popularity decline has created a negative view of her in the UK. Credit rating agency Standard & Poor’s recently joined the pessimistic view of other institutions, downgrading the UK government’s debt outlook from “stable” to “negative”. Moody’s agency and the International Monetary Fund have also expressed concerns about this. A worse rating can mean you have to pay higher interest rates to take out new debt, which limits the scope of action.
Downtrend of the bond market
The bond market was also falling. Eventually, the Bank of England intervened to reduce the turmoil. Conservative leader Jake Berry said markets may have overreacted. He told Sky News: “Let’s see where the markets are in six months.” Berry also confirmed that Conservative MPs who vote against the government’s plan for tax cuts would lose the whip. It has been reported that some Tory MPs are preparing to vote with Labour to prevent measures announced by the chancellor on 23 September, including abolishing the top income tax rate.
Controversial designs of Liz Truss
The controversial economic and tax plans of Liz Truss, the new Prime Minister of the UK and some sudden withdrawals from these plans have created complex and challenging conditions for her. Disagreements within the UK government over funding the tax cut plan have fueled uncertainty among the Conservatives. Prime Minister and Conservative Party leader Liz Truss are increasingly under fire.
Confusion in the new UK government
Political twists and changes in the policy of the new UK government are slowly causing chaos in the government. Under pressure, the UK government initially cancelled a planned cut in the top income tax rate. Chancellor Kwasi Kwarteng then hinted that plans to fund a raft of tax cuts would be presented later this month rather than in November as planned.
Changing the approach of Liz Truss after criticism
The new UK government recently had to cancel and withdraw the controversial tax plan for high earners after severe criticism of its controversial economic program, especially from the ruling conservative party. The new UK government led by Prime Minister Liz Truss wanted to boost the economy by lowering the tax rate for high earners. But after severe criticism, it has now changed course.
The turn in the economic policies of the new government
In this way, following the criticism of the UK government’s economic plans, London announced a change in its policy. Kwasi Kwarteng announced in Birmingham on Monday morning that the top tax rate of 45% for high earners will no longer be abolished. In a statement on Twitter, the conservative politician wrote: “We get it, and we have listened.” In this way, the UK government announced that it would abandon its plan to reduce the income tax of the rich.
Conservatives’ lack of acceptance of the Truss plan
Reducing the income tax rate for the high classes of society from 45% to 40% was part of Liz Truss’s economic plan, which drew much criticism even from conservatives, and critics accused her of favouring billionaires amid the financial crisis. But this has not gone down well with the Truss party base; many are restless and critical of the chaos in the new government led by Liz Truss.
Liz Truss’s struggle for political survival
Liz Truss fights for political survival. Home Secretary Suella Braverman defended the Prime Minister in Birmingham, explaining why she is in favour of cutting the top tax rate. On the other hand, Liz Truss once again mentioned the unity of the government. She told Times Radio that her ministers are behind his economic growth plans. The prime minister wants to boost economic growth with some measures, including cuts in land transfer tax, corporate tax and input tax rates.
The dispute over how to finance the government’s tax cut plan can become very contentious and challenging. A new election would be a disaster for the Conservative Party now. In the past weeks’ polls, most participants said they would vote for the Labor Party if elections were held. At the same time, the popularity of the conservative party is decreasing. With this in mind, the pressures on Liz Truss are enormous.
