Controversial New British ‘Mini-Budget’ Thrusts Markets into Disarray; PM Truss Stands By Decision

Newly-appointed British Prime Minister Liz Truss has stood by her newly-released "mini-budget" on Thursday, despite causing market disruptions and a negative reception from the financial and economic sectors of the world.

Truss’s "mini-budget," which is a series of economic policies that her administration plans to push forward, was negatively received by the public after seeing more tax cuts for richer individuals, causing the Bank of England to intervene on Monday to protect pension funds and the International Monetary Fund to criticize the policies, according to the Guardian.

Despite this reaction, Truss and her administration have continued to stand by the "mini-budget" during radio interviews with the BBC, claiming that the plan is necessary in order to push for benefits in the long term, though she did not specify what those benefits are.

“Of course, some of these decisions are difficult,” she said. “Some people don’t like them. But what I couldn’t do is allow the situation to drift. So that is why my government has taken urgent action.”

The new "mini-budget" had caused the British pound to spiral downwards in value, and public spending cuts are being expected due to the loss in revenue that would occur after the significant tax cuts pushed by Truss’ administration. Chief Secretary of the Treasury Chris Philp has attempted to downplay the British pound crash to the press, Sky News reported.

“I don’t accept the word ‘crisis’ at all,” he said.

The new economic policies are deeply unpopular, with a poll conducted by YouGov/Times showing that the Tories were trailing behind the Labour party by over 33 points, the highest lead any party has enjoyed since the 1990s. A petition has also been going around demanding an early parliament election, receiving the 100,000 signatures necessary for it to be considered by parliament, the Independent reported.

“It is disgraceful that the family finances of people across the country are being put on the line simply so the government can give huge unfunded tax cuts to the richest companies and those earning hundreds of thousands of pounds a year,” shadow chancellor Rachel Reeves said.

“If the prime minister continues to [prioritize] saving her face over saving people’s homes, Tory MPs must join Labour in calling for parliament to be recalled so this kamikaze budget can be reversed,” she continued.

“The government has clearly lost control of the economy,” Labour leader Sir Keir Starmer said. “What the government needs to do now is recall parliament and abandon this budget before any more damage is done.”