Criticism of Liz Truss’s economic guru for attending a party with vulture funds

Liz Truss faces a litmus test with the launch of her tax plan. After admitting that there were errors in the presentation of her tax reduction program, which generated a real ‘shock’ in the markets, now the controversy is in the New UK Chancellor of the Exchequer. Kwasi Kwarteng, has been the subject of criticism and even a request for investigation after it was learned that she was at a private party with directors of investment funds or vulture funds before presenting the controversial tax reduction plan for the highest incomes.

The newspaper ‘The Sunday Times’ has published that Kwarteng was at an event in the London neighborhood of Chelsea on September 23 in which the directors encouraged him to defend his tax reduction plan and highlighted that those responsible for the funds financiers who organized The party benefited directly from the fall in the pound that occurred after the presentation of the fiscal plan. The collapse of the currency has forced the Bank of England to suspend the sale of bonds that was to take place next week and will start buying long-term bonds in an attempt to calm the market.

British Prime Minister Lizz Truss has been questioned for the convenience of Kwarteng participating in this type of act considering the damage that inflation is doing. “I wake up every morning wondering how make the people of our country more successful, that they are safer, how to help people get through this difficult time,” she replied. “That’s what I’m focused on. That is where the minister of Treasury is focused and on which the entire Government is focused,” he stressed.

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The Chairman of the Conservative Party, Like Berry, also present at the controversial event, denied this Sunday in statements to the ‘Sky News’ chain that Kwarteng discussed the tax reduction plan at the party. “I didn’t hear him talk about it. I heard him Discuss your plan to generate growth“, he pointed out. Berry has defended party relations with businessmen and has stated that “they should be praised” for this type of act that is “something normal” for the Ministry of Finance.

The match The Liberal Democrat has called for an official investigation. “Households are having a hard time. They see their mortgages skyrocket and the Chancellor of the Exchequer drinks champagne with hedge fund managers who they benefit from the pound falling“, said the Liberal spokeswoman Sarah Olney. Sources from the Ministry of Finance have stressed that “it has no sense to insinuate that the attendees (to the party) had access to privileged information”. “The Government’s intention to reduce the tax burden is not a State secret”, they have argued.

The plan of cutout of Truss and his finance minister, Kwasi Kwarteng, the most aggressive in half a century, ended up shooting up the risk premium of British debt until it was close to that of Italy and forced the Bank of England to announce a forthcoming increase in interest rates. Among other measures, the plan contemplates the elimination of the maximum rate of 45% (a decision for which Truss held Kwarteng responsible), the reduction from 20% to 19% of the basic rate, the elimination of the corporate tax increase implemented by the previous Cabinet and the cancellation of the current limit to the bonuses received by bankers.