Is Liz Truss Already Toast?

The video discusses the financial and political turmoil following the Prime Minister's policy announcements, which included significant tax cuts and an energy price cap. The market reacted negatively, leading to a drop in the pound and increased borrowing costs. The Bank of England intervened to stabilize the market. Public and media responses were critical, and political fallout ensued, with the government eventually reversing some policies. The video explores the potential future actions and economic implications of these events.

What was the immediate impact of the Prime Minister's first big policy announcement?

• Strengthening of the pound

• Stability in financial markets

• Historic lows for the pound and increased borrowing costs

• Decrease in government borrowing costs

Which tax was NOT mentioned as part of the proposed cuts in the mini-budget?

• Value Added Tax (VAT)

• Stamp duty

• Basic rate of income tax

• Top rate of income tax

What was the reaction of international markets to the mini-budget announcement?

• Supportive, with a rise in government bonds

• Negative, leading to a drop in the pound and bond sell-off

• Neutral, with no significant changes

• Positive, with increased investment

What unprecedented action did the Bank of England take in response to the market turmoil?

• Increased interest rates

• Bought large amounts of government bonds

• Sold off foreign currency reserves

• Decreased interest rates

What was the political consequence of the poor reception of the mini-budget?

• Stability in the Prime Minister's approval ratings

• Increased support for the Prime Minister

• A significant lead for Labour in polls

• A decrease in Labour's popularity

What was the government's response to the backlash against the 45P tax cut?

• They postponed the decision

• They reversed the decision

• They ignored the criticism

• They doubled down on the policy

What future action did the government indicate it might take to manage its financial plans?

• Expand the welfare state

• Raise taxes significantly

• Increase public service spending

• Cut public service spending