Is Another Truss And Kwarteng Economic U-turn Imminent?

14th October 2022

Chancellor Kwasi Kwarteng has given his clearest indication yet that he's preparing to make another U-turn on his mini-budget, endorsed by the Prime Minister Liz Truss.

In a series of interviews he refused to rule out ditching the corporation tax cut on which Liz Truss staked her campaign for the premiership.

Amid fevered speculation of a volte face, UK government bonds and the pound rallied. "Let's see", Kwasi Kwarteng said to one newspaper.

But the unpalatable truth is that a growing number of the prime minister's own colleagues now see her as doomed either way: if she gives the markets what they want - to her own political cost or - if she doesn't - to the detriment of the British economy.