More UK U-turns? Speculation mounts about embattled Truss and Kwarteng
- Finance minister Kwarteng cuts short US trip as new PM Truss comes under pressure over economic proposals
- Multiple media reports suggested the embattled leaders were mulling more U-turns on some of their plans
Britain’s beleaguered finance minister Kwasi Kwarteng cut short his trip to Washington for this week’s global finance minister meetings and has headed back to London amid reports Prime Minister Liz Truss is considering reversing more of her government’s controversial “mini-budget”.
Kwarteng confirmed to reporters in Washington that he was flying back to London early, without providing further details. Sources familiar with the matter said he planned to meet with colleagues to work on his medium-term budget plan.
Kwarteng is set to announce that plan on October 31, alongside independent financial forecasts. He had been in Washington to attend meetings of the Group of 20 finance ministers as well as the annual meetings of the International Monetary Fund and World Bank.
Reports circulated on Thursday that Truss was weighing a U-turn on elements of the plan Kwarteng announced three weeks ago that triggered turmoil in financial markets, prompting the Bank of England to step in to restore calm. The battered pound and British government bonds all rallied on the news.
Sky News, citing sources, said discussions were under way in Downing Street over whether to scrap elements of the plan, and The Sun newspaper said Truss was considering allowing a rise in corporation tax next April, something she promised to halt in her bid to be prime minister, in which she vowed to sweep away the “orthodoxy” of economic policy.
On Thursday before his departure, Kwarteng was asked repeatedly in an interview with BBC television whether the reports of a change of policy on corporation tax were accurate, and he answered that he was focused on his growth plan.
