Lowering Tax, Lettuce, & Liz Truss

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The British economy has been severely affected by the short reign of Liz Truss. Rishi Sunak, the newly appointed UK Prime Minister rises to relieve the weakness of the British market.

Liz Truss did not outlast a head of lettuce. In fact, her short term in office, lasting six weeks, was even shorter than her election process. She now stands as the shortest serving Prime Minister in British History, known for the damage she served to the UK economy and her absurdly short reign.

On Thursday, October 20, Truss resigned due to a failed plan to decrease a tax budget, severely affecting British financial markets. Her party, the Conservative Party, called for her resignation, alongside many citizens of the United Kingdom and international onlookers.

Upon her resignation, Truss (said), “I recognize though, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party. I have therefore spoken to His Majesty the King to announce that I am resigning as leader of the Conservative Party.”

On that same day, the pound was recorded to be up 0.6%, the inflation rate significantly high as it matched $1.128 U.S dollars.

In response to the economic crisis, Paul Dales, the chief U.K. economist from Capital Economics, shared, “The resignation of Truss is a step that needed to happen for the UK government to move further along the path towards restoring credibility in the eyes of the financial markets.”

He warns British citizens that, “more needs to be done and the new Prime Minister and their Chancellor have a big task to navigate the economy through the cost of living crisis, cost of borrowing crisis, and the cost of credibility crisis.”

Only five days later, on Tuesday, October 25, Rishi Sunak of the Tory Party rose to take office as the new British Prime Minister. With a strong background in economics, Sunak poses promise as he takes charge of the economic situation at hand.

Sunak is currently 42 years old, being the youngest person to take office in the past 200 years. He is also the first person of color, born to Hindu parents, Yashvir and Usha. During his (speech), Sunak (said),

“The United Kingdom is a great country, but there is no doubt we face a profound economic challenge. We need stability and unity, and I will make it my utmost priority to bring our party and our country together.”

Similar to Truss, Sunak vowed to continue the enforcement of the strict policies against illegal immigration and the expansion of the Rwanda immigration policy. However, unlike Truss, Sunak has decided to take different economic measures as a prior critic of Truss’ economic plan.

While Sunak may have a more promising future than the minuscule time Truss spent in office, there is no denying the potential of a recession occurring in British markets, or its overall weakness, even before the damage Truss dealt to it.

All eyes are on Sunak during his first few weeks in office. The British economy is still recovering from Truss’ failed plan and requires a safe and concise strategy to repel its effects. Will Sunak have the solution the United Kingdom needs? Or will another Prime Minister go down in history, with their reign being shorter than the life of a lettuce head?