By Ben Kerrigan-
Chancellor Kwasi Kwarteng9pictured) is set to meet bankers today in an attempt to resolve the worrying state of the Uk economy which has seen the pound plummet to its highest low in decades.
Kwarteng said that the economic situation would be better in 2024, before what he said was always going to be a “tricky” general election – with Labour currently surging ahead in the polls.
The chancellor who was the star addition to Liz Truss’s government, suddenly finds himself under mounting national and international criticism over his recommendation to cut taxes in an attempt to effectively combat the energy crises.
His decorated academic background which included an education at Eton College which culminated in a degree at Oxford University where he got a double first in history and classics, phenomenally raised his image as one of the powerhouses of this new government.
That perception is facing a sudden challenge by experts across the pond, but Kwarteng says he is doing everything to stay on track.
The direction towards his fiscal goal of tax cuts sparked alarm that immediately threatened the efficiency of this new Uk government, forcing the bright Oxford graduate to conduct a swift review of his original plans.
Kwarteng attempted to assure MPs that he is not being as reckless as feared by a number of Tory Mps , telling them he is establishing a “good working relationship” with the governor of the Bank of England and was in daily contact with him.
Wide Criticism
Wide criticism against his mini budget has shaken the core of Liz Truss’s new government, which is now trailing the Labour Party in the polls.
Kwarteng is also expected to underline his commitment to fiscal discipline and will talk about a “Big Bang 2.0 event” from his growth plan.
The International Monetary Fund (IMF) said it was “closely monitoring” developments in the UK and urged Mr Kwarteng to “re-evaluate the tax measures”.
It said that the plans, including the abolition of the 45p rate of income tax for people earning more than £150,000, are likely to increase inequality.
The Bank of England (BoE) has signalled it was ready to significantly ramp up interest rates to shore up the pound and guard against increased inflation.
The chancellor insists his policies will deliver the promised economic growth but concerned Tory Mps are not as confident in his strategy.
Last night he spoke by phone to Tory MPs at a time of growing anger on the backbenches over the government’s strategy.
Conservative MP Sir Roger Gale says that another financial crash may be on the way.
Speaking to Good Morning Britain, he said the situation amounts to a “perfect storm”.
He added: “I’m sadly old enough to remember the last financial crash.
“When… people would come into the surgery in tears because they were losing homes and they were losing businesses.
“It was not a pretty sight and I don’t want to see it happen again.”