UK's Truss sacrifices finance minister, scraps tax plan in fight to survive

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British Prime Minister Liz Truss appoints former foreign and health secretary Jeremy Hunt as finance minister, replacing Kwasi Kwarteng, following turmoil in financial markets over the government's economic plans.

Yields on the long-dated bonds which bore the brunt of the market turmoil are now within less than half a percentage point of the 20-year highs they struck on Wednesday, October 12.

The search for savings will be made harder by the fact that successive Conservative governments have been cutting departmental budgets for years. “The party loves the idea of principles and conviction politicians, but staying in power is everything,” one party insider told Reuters. “Ruthless can also be popular.”

Christopher Chope, a veteran Conservative lawmaker and Truss supporter, said the party was now a laughingstock. “I thought she was made of sterner stuff,” he told Times Radio.

 

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