Why did UK tax cuts kill Liz Truss?

Why did UK tax cuts kill Liz Truss?

The Bank of England and the UK Government have agreed that any loss to the ‘old lady’ from the bond program must be borne by the taxpayer. And, with the rate hike, that’s exactly what started to happen. Now the Bank of England must pay more for the deposits the bank makes with the institution than it receives for the coupon bonds it buys. And it has resulted in the first loss to the British public coffers due to the Bank of England in history.

In September taxpayers had to pay 156 million pounds. And they have calculated that this fiscal year they will have to transfer 11,000 million pounds for losses in their purchasing program. Something unsustainable if, on top of that, Truss thought about lowering taxes.

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Roderick Gilbert

"Entrepreneur. Internet fanatic. Certified zombie scholar. Friendly troublemaker. Bacon expert."

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