Oh will you look at that! A government u-turn!

[tenbob]

AIBU to think this government is now totally dead in the water..?

Wonder what all the Truss handmaidens tying themselves in knots to defend the tax cut will say now..?

Christ , Sooty would be better qualified for PM than this shower of shit

I think the 'what about Labour' bots are behind the times. Even tory MPs know that these days when you blame the 'last lot' you mean previous tory governments.

What I really don't get is this..most policies are drip fed to the press before announcement to gauge reaction. This one was kept firmly under wraps until the budget, it's like they knew it was going to be hated but ran with it anyway. They couldn't have picked a worse timing to remove it. And all the while sticking with the 5 year halt to increases in the basic and higher rate tax bands! Absolute madness.

Arrogant ✅️
Incompetent ✅️
Corrupt ✅️
Chaotic.✅️

New PM, same Tory shysters.🙄

A maximum of £65bn to buy assets for resale is not the same as £65bn cost to the taxpayer. Firstly, the whole amount may never get spent and secondly the gilts will be resold.

Nobody can say it has cost £65bn because nobody knows how much of the £65bn the BoE will actually spend nor how much they will get back when they sell the gilts again.
The policy to abolish the 45% rate was stupid but none of us can say that it cost the taxpayer £65bn because that would assume the gilts became worthless when purchased.

The BOE hasn't spend 65billion.

The markets are more concerned with the debt and the size of the deficit. Bailout after bailout is dilution of economic output.
The economy wasn't and hasn't crashed.
A brief trip out this morning confirms people and businesses are open and trading.
What's needed is tough love not u turns.

Spent. .
Edit button please..

It may have generated real wealth for some of the evening champagne buddies. We know how that works.

Embarrassing. Reckless fools.

www.independent.co.uk/news/uk/politics/kwarteng-cuts-tax-truss-budget-b2191341.html

Still lots of spending cuts to come. They've only shaved off 2 billion by dropping that tax cut.

@lannistunut - you typed your response in perfect English. Not your fault people don't bother to read it.

@FluffySocksAndHotChocolate - thank you for the link. I have signed.

Peston: Why did @ KwasiKwarteng and @ trussliz drop the abolition of the 45p top tax rate? Because super wealthy donors to the Tory party told them “we don’t need the money, we don’t want the money and you are bringing us into disrepute”. This is the highest political farce.

Op why you are so annoyed about the u turn?
You should be pleased the tax cuts won't be happening now.

It was a terrible decision in the first place to reduce highest bracket from 45p to 40p. The reversal is very welcome. The pound has bounced back to level seen before mini budget. Fiscally it was only a tiny amount of overall package at 2 billion out of a package of 40 billion. The markets were spooked by the 40 billion not the 2 billion. They will still be spooked by 38 billion. The mortgage spike was partly caused by BoE putting up rates and staying a higher rate is in line for November, widely expected to be 1 we hole percentage point. What Tory's have done is lost politically. They have largely lost public support. They will find it hard to recover from this. But 2 years to go before next general election and the economy might have turned into more growth by then. Pensions have lost as lot of money as have FTSE. However the stronger the pound the weaker the FTSE gets, that is like a see saw, when one is up the other is down. Better to u turn than carry on down wrong path though.

It isn't just about the BoE bailout though. It's about all the people who were hoping to get a mortgage only to see over 1000 good mortage products pulled. Those people are tax payers and the cost to them will be substantial. Are all the Tory fangirls on here OK with that?

It is the tip of the iceberg, we are not changing course, we are on the Titanic, Tories have already hogged the lifeboats.

This is a really dumb question, but I want to understand how this works. Who owned the gilts the BOE bought and who will they be resold to?

Continuity Johnson:

Ben Rilyer-Smith, Telegraph: Cabinet ministers blindsided by the 45p move. Spoke to one this morning who found out first via the media then a call around 7am confirming. Full cabinet wasn’t consulted when the original policy was adopted; wasn’t consulted when it was scrapped.

L1ttledrummergirl

If you don't want posters to comment on the Labour Party you need to control the Labour supporters up thread who have commented positively on Labour/ Keir Starmer. You can't have it both ways - Labour/Keir Starmer are banned topics of discussion or they are not.

Those who are calling for more money to be spent on public services can't understand that would mean more borrowing we can't afford after government intervention into fuel bills costing 30 million pounds for houses for 2 years and businesses for 6 months. It is unsustainable in the longer term. Public services will have to be cut to pay for fuel intervention. That is a fair trade off as all will benefit but it was not fair for richest 5 percent to benefit disproportionately. I think pensions will get triple lock as only got 3 percent last year. I think UC will get lower uplift possibly 4-5 percent.

Because the damage is done. Such a huge amount of long-term damage to our economy and credibility for a policy they dropped a week later. Do you think we should be praising these cretins instead?

This is such an interesting point. We may see Red Wall MPS who just defect and stand as Independents - that’s obviously a massive risk for their re-electability, but if they resign from the Conservatives and have proved themselves to be good local MPs, they may just get re-elected as an Independent. These are turning out to be crazy times.

I have no problem with U turns. It Shows they've listened. Had labour done a u turn like this they'd have been praised for it.

On the pensions triple lock point, Liz Truss confirmed yesterday on Laura Kuenssberg’s politics show that the triple lock is still in place (for now!!)

Even tory libertarians are terrified of voters over 65.