British Prime Minister Liz Truss leaves 10 Downing Street to receive the Weekly Prime Minister’s Questions (PMQs) at the House of Commons in London, United Kingdom on October 19, 2022.
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British Prime Minister Liz Truss insisted on Wednesday she was a “fighter, not a panicked” as she was questioned by parliamentarians for the first time since then. forced to scrap almost all of its major financial policies.
Truss said she “acted in the national interest to make sure we had economic stability,” while also starting the hearing by saying she was “sorry” and “made mistakes.”
The row over its massive tax cut programme, originally announced on September 23, came after it sent huge volatility in financial markets, with pound sank Against the dollar and British government bonds being sold at such a rapid rate Threatened to fall retirement funds. Mortgage deals were pulled out too Expectations of a rate hike rose rapidly.
Full details of the government’s new economic policies are expected on October 31, along with an independent economic forecast.
Lines of attack from opposition leader Keir Starmer during the Prime Minister’s Questions on Wednesday included questions about how the public could trust a leader whose “promises did not last a week”; describe its policies as “fictional economics”; Truss is accused of destroying the economy.
“I had to make the decision because of the economic situation to adjust our policies,” Truss said. She added that interest rates are rising globally, and the economic outlook has worsened.
Analysts Tell CNBC’s bond markets have been affected by a combination of factors and may recover, but the UK has suffered long-term damage to its economic credibility.
The turmoil over the past month has left Truss under control Intense pressure to resign Less than two months into her term, even from her party members.
Speculation is currently rife about her future, including whether she can step down – with the Conservative Party dropping in opinion polls and a recent YouGov poll putting Truss’s popularity at just 10% – or force her out.
Under current party rules, the Conservatives cannot oust Truss and hold another leadership election for a year. Truss went head-to-head against former Finance Minister Rishi Sunak for two months over the summer after former Prime Minister Boris Johnson Resigned in July.
However, the party could agree on a replacement if it were to step down, or it could consider changing the existing rules.
Both options are likely to be divisive, with the party also split over the best successor. It is believed that among the contenders is the new Finance Minister Jeremy Hunt. Sonak. House of Commons leader Penny Mordaunt, who replaced Truss earlier this week; Until Johnson returns.
It could also leave the party facing more pressure to hold a general election to give it a general mandate. The last vote was held on December 12, 2019, when Johnson led the Conservatives by an overwhelming majority.
Meanwhile, the opposition Labor Party has called for a vote later Wednesday on bringing Britain’s Labor Party back Hydraulic fracturing ban Described in a leaked Tory email, Published by Sky Newsas a “proposal of confidence in the government”.
Several Conservative MPs oppose hydraulic fracturing, which was only allowed last month.
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