London: Lizzu truss Taking over as British prime minister on Tuesday, he vowed immediate action to tackle one of the toughest challenges for an incoming leader in post-war history, led by energy bills, a rising recession and Due to industrial conflict.
Truss, the fourth Conservative prime minister in six years, was asked to fly to the Scottish home of the royal family. Queen Elizabeth to form the government. she replaces boris johnson who was ousted after three turbulent years in power.
“We are now facing serious global headwinds from Russia’s horrific war in Ukraine and the aftermath of Covid,” the 47-year-old former foreign secretary said outside his Downing Street office.
“I believe that together we can get out of the storm. We can rebuild our economy, and we can become the modern brilliant Britain I know we can be.”
Truss, who will announce his government appointments later, said he had three priorities: growing the economy through tax cuts, tackling rising energy costs starting this week, and making sure people get the care they need. from the state-run National Health Service.
However, it has inherited a crisis-ridden economy, with inflation in double digits, rising energy costs and the Bank of England warning of a prolonged recession until the end of this year. Already, workers across the economy have gone on strike.
Its plan to revive growth through tax cuts, while potentially providing nearly 100 billion pounds ($116 billion) for energy, has rocked financial markets, causing investors to lose the pound in recent weeks. and has been prompted to dump government bonds.
The truss also sought to repeal plans to increase corporation tax on large firms and to reverse an increase in payroll tax on workers and employers designed to raise additional funds for health and social care, with additional spending coming from general taxation. has promised.
British 30-year government bonds suffered the sharpest one-day fall since March 2020, when the COVID-19 pandemic caused turmoil in financial markets, as investors needed plans for an additional borrowing truce. is likely to.
Ten-year borrowing costs rose to their highest level since 2011, but two-year yields fell, with economists noting that an energy price cap would prevent inflation from rising in the near term.
Truss said, “I know we have what it takes to address those challenges. Of course, it won’t be easy, but we can do it.”
“I will take action on this day and take action every day to make it happen. Together with our allies, we will stand up for freedom and democracy around the world, recognizing that without security abroad there is no security at home can.”
us President Joe Biden Truss was one of the first to congratulate.
“I look forward to deepening the special ties between our countries and working in close cooperation on global challenges, including continued support for Ukraine as it defends itself against Russian aggression,” he said on Twitter. .
weak hand
The new prime minister will address the latest crises affecting Britain with a weaker political hand than many of his predecessors.
After holding a position in the cabinet of senior ministers for eight years, he defeated the rival Rishi Sunki in one vote of conservative Party Members by a smaller margin than expected, and the party’s more MPs initially supported its opponent.
Johnson, who tried to stay in power despite ministers resigning over a series of scandals in July, told reporters and politicians gathered in Downing Street early Tuesday that the country must unite.
In his farewell speech, he said, “It’s time to end politics, friends.” “It’s time to go after all of us liz truss And his team and his program.”
After speaking outside the famous Black Door, he left London to travel to northeastern Scotland and submit his resignation to the 96-year-old Queen Elizabeth, before Truss followed him to Balmoral Castle to appoint his successor.
Johnson used his departure speech to boast of his successes, including an early vaccine program during COVID-19 and his staunch support for Ukraine in its fight against Russia.
He also listed “delivering Brexit” as one of his main achievements, although surveys now show that most people think left. The European Union It was a mistake.
Britain, under Conservative rule since 2010, has been mired in crisis in recent years and now faces the prospect of a protracted energy emergency that could cripple the savings of households and jeopardize the future of businesses that are now are also affected by the covid-era loans.
Household energy bills are due to jump 80% in October, but a source familiar with the situation has told Reuters that the truce could freeze the bills in a plan that could cost up to 100 billion pounds ($115.33 billion), Which may surpass the Covid-19 furlough scheme. ,
The scale of the package, as well as the fact that the energy crisis could last for a few years, has stunned investors.
The pound has underperformed against the US dollar in recent times compared to most other major currencies.
Sterling declined 4% against the greenback in August alone, according to records from Refinitiv and the Bank of England, marking the worst month for 20-year British government bonds since 1978.
Britain’s public finances are also weighed down by the government’s huge coronavirus spending spree. Public debt as part of economic output is nowhere near 100%, from about 80% before the pandemic.
Truss, the fourth Conservative prime minister in six years, was asked to fly to the Scottish home of the royal family. Queen Elizabeth to form the government. she replaces boris johnson who was ousted after three turbulent years in power.
“We are now facing serious global headwinds from Russia’s horrific war in Ukraine and the aftermath of Covid,” the 47-year-old former foreign secretary said outside his Downing Street office.
“I believe that together we can get out of the storm. We can rebuild our economy, and we can become the modern brilliant Britain I know we can be.”
Truss, who will announce his government appointments later, said he had three priorities: growing the economy through tax cuts, tackling rising energy costs starting this week, and making sure people get the care they need. from the state-run National Health Service.
However, it has inherited a crisis-ridden economy, with inflation in double digits, rising energy costs and the Bank of England warning of a prolonged recession until the end of this year. Already, workers across the economy have gone on strike.
Its plan to revive growth through tax cuts, while potentially providing nearly 100 billion pounds ($116 billion) for energy, has rocked financial markets, causing investors to lose the pound in recent weeks. and has been prompted to dump government bonds.
The truss also sought to repeal plans to increase corporation tax on large firms and to reverse an increase in payroll tax on workers and employers designed to raise additional funds for health and social care, with additional spending coming from general taxation. has promised.
British 30-year government bonds suffered the sharpest one-day fall since March 2020, when the COVID-19 pandemic caused turmoil in financial markets, as investors needed plans for an additional borrowing truce. is likely to.
Ten-year borrowing costs rose to their highest level since 2011, but two-year yields fell, with economists noting that an energy price cap would prevent inflation from rising in the near term.
Truss said, “I know we have what it takes to address those challenges. Of course, it won’t be easy, but we can do it.”
“I will take action on this day and take action every day to make it happen. Together with our allies, we will stand up for freedom and democracy around the world, recognizing that without security abroad there is no security at home can.”
us President Joe Biden Truss was one of the first to congratulate.
“I look forward to deepening the special ties between our countries and working in close cooperation on global challenges, including continued support for Ukraine as it defends itself against Russian aggression,” he said on Twitter. .
weak hand
The new prime minister will address the latest crises affecting Britain with a weaker political hand than many of his predecessors.
After holding a position in the cabinet of senior ministers for eight years, he defeated the rival Rishi Sunki in one vote of conservative Party Members by a smaller margin than expected, and the party’s more MPs initially supported its opponent.
Johnson, who tried to stay in power despite ministers resigning over a series of scandals in July, told reporters and politicians gathered in Downing Street early Tuesday that the country must unite.
In his farewell speech, he said, “It’s time to end politics, friends.” “It’s time to go after all of us liz truss And his team and his program.”
After speaking outside the famous Black Door, he left London to travel to northeastern Scotland and submit his resignation to the 96-year-old Queen Elizabeth, before Truss followed him to Balmoral Castle to appoint his successor.
Johnson used his departure speech to boast of his successes, including an early vaccine program during COVID-19 and his staunch support for Ukraine in its fight against Russia.
He also listed “delivering Brexit” as one of his main achievements, although surveys now show that most people think left. The European Union It was a mistake.
Britain, under Conservative rule since 2010, has been mired in crisis in recent years and now faces the prospect of a protracted energy emergency that could cripple the savings of households and jeopardize the future of businesses that are now are also affected by the covid-era loans.
Household energy bills are due to jump 80% in October, but a source familiar with the situation has told Reuters that the truce could freeze the bills in a plan that could cost up to 100 billion pounds ($115.33 billion), Which may surpass the Covid-19 furlough scheme. ,
The scale of the package, as well as the fact that the energy crisis could last for a few years, has stunned investors.
The pound has underperformed against the US dollar in recent times compared to most other major currencies.
Sterling declined 4% against the greenback in August alone, according to records from Refinitiv and the Bank of England, marking the worst month for 20-year British government bonds since 1978.
Britain’s public finances are also weighed down by the government’s huge coronavirus spending spree. Public debt as part of economic output is nowhere near 100%, from about 80% before the pandemic.