Are Truss and Kwarteng About to Do a U-Turn?

The transcript discusses the political and economic turmoil surrounding the UK government's fiscal policies, particularly the proposed income tax cut. It highlights the market's negative reaction and the political backlash faced by Prime Minister Liz Truss and Chancellor Kwasi Kwarteng. The text also covers the potential U-turn on the tax policy, the internal political dynamics within the Tory party, and the challenges of maintaining credibility with the markets. The future of the fiscal package and the possibility of advancing the fiscal forecast are also explored, with concerns about potential spending cuts and their political implications.

What was one of the main reasons for the political backlash against the fiscal package?

• The increase in corporate taxes

• The cut in the top rate of income tax

• The introduction of new tariffs

• The reduction in public spending

Who was criticized for not laying the groundwork properly for the fiscal plans?

• The Finance Minister

• The Chancellor

• The Prime Minister

• The Leader of the Opposition

What action did the Prime Minister take to regain control over the situation?

• Increased public spending

• Resigned from her position

• Seized the initiative to U-turn on the tax policy

• Called for a general election

What unusual meeting did the Prime Minister and the Chancellor have?

• With the United Nations representatives

• With the World Bank officials

• With the Office for Budget Responsibility boss

• With the European Union leaders

What might the government need to do to balance the books according to Bloomberg Economics?

• Sell government assets

• Borrow more money

• Increase taxes

• Cut spending deeper than in the austerity years