The UK government’s budget plans will be released sooner. Finance Minister Kwasi Kwarteng, who faces the arduous task of regaining the confidence of the financial markets after the earlier announcement of the budget agenda, will announce the details on Monday, October 31.
The deadline was previously November 23.
Kwarteng previously shook the markets after he came up with a £45bn tax cut, some £51bn, along with additional spending to help businesses and households with their energy bills. The lack of details about how this would be paid caused concern. The pound lost a lot of value after the announcement. Kwarteng’s plans also caused a sharp drop in government bond prices. The Bank of England intervened with the purchase of government bonds. This protected pension funds, among other things, from a partial collapse.
The new release date will allow the Bank of England to examine the government’s tax and spending plans before the central bank makes its interest rate decision on November 3. Earlier, the central bank decided to extend emergency support for the shaky government bond market ahead of the support’s expiration on Friday.
Kwarteng and Prime Minister Liz Truss hope the UK audit office OBR will confirm their claims that the combination of tax cuts and reforms can deliver economic growth. However, the International Monetary Fund said the government’s drive for economic growth and the Bank of England’s efforts to contain inflation are contradictory.
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