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Turmoil in Britain: Its political crisis is a self-inflicted wound

Govts should respect fiscal constraints as once confidence is lost in a country's institutions and political maturity, it cannot be easily regained

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Business Standard Editorial Comment Mumbai
The United Kingdom’s short experiment with fiscal irresponsibility came to an inglorious end last week when Prime Minister Liz Truss was forced to resign as a consequence of the economic and political turmoil her economic programme had unleashed. Ms Truss and her original choice for chancellor of the exchequer, Kwasi Kwarteng, had set out an expansionary fiscal programme that included the cancellation of planned corporation tax increases and a cut in personal income tax rates. A huge package meant to subsidise British consumers’ energy costs at a time of sharp fuel price rises was also included. The fiscal and growth

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First Published: Oct 23 2022 | 10:16 PM IST

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