Truss promises to act against energy crisis after taking office as British Prime Minister

By: News Team

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Liz Truss was sworn in as Britain’s new prime minister on Tuesday, promising immediate action to tackle one of the most daunting challenges to an incoming leader in post-war history, led by rising energy bills. , an impending recession and industrial problems.

Truss, the fourth member of the Conservative Party to hold the post of prime minister in six years, flew to the Scottish home of the royal family to receive the commission from Queen Elizabeth to form a government. He replaces Boris Johnson, who was forced to resign after three tumultuous years in power.

“We are facing severe global headwinds caused by Russia’s terrible war in Ukraine and the fallout from COVID,” the 47-year-old former foreign secretary said outside her Downing Street office.

“I am confident that together we can weather the storm. We can rebuild our economy and become the brilliant modern Britain that I know we can be.”

Truss, who will announce her government appointments later, said she has three priorities: growing the economy through tax cuts, tackling rising energy costs starting this week and ensuring people get the care you need in the state NHS.

However, it inherits an economy in crisis, with double-digit inflation, skyrocketing energy costs and the Bank of England warning of a long recession by the end of the year. Workers in all sectors of the economy have already gone on strike.

His plan to revive growth through tax cuts, while potentially spending some £100bn ($116bn) on energy, has rattled financial markets, sending investors dumping the pound and of government bonds in recent weeks.

Truss has also promised to scrap plans to raise the corporate tax on big business and reverse the payroll tax increase for workers and employers, designed to raise additional funds for health and welfare, and that the extra expense would come from general levies.

UK 30-year government bonds suffered their biggest one-day drop since March 2020, when the COVID-19 pandemic sent financial markets into turmoil as investors eyed the additional borrowing the plans are likely to require. of Truss.

The cost of 10-year borrowing hit its highest since 2011, but yields on two-year notes fell, and economists said a cap on energy prices will stop inflation from rising in the short term.

“I know we have what it takes to meet those challenges. Of course, it won’t be easy, but we can do it,” Truss said. “I will take action today and every day to make it happen. United with our allies, we will defend freedom and democracy around the world recognizing that we cannot be safe at home without safe abroad.”

US President Joe Biden was one of the first to congratulate Truss. “I look forward to deepening the special relationship between our countries and working in close cooperation on global challenges, including continued support for Ukraine as it defends itself from Russian aggression,” he said on Twitter (NYSE: TWTR ).

WEAK HAND

The new prime minister will tackle the latest crises in Britain with a weaker political hand than many of her predecessors.

Having held a senior ministerial cabinet post for eight years, he defeated his rival Rishi Sunak in a vote of Conservative Party members by a narrower-than-expected margin, and with initial support from lawmakers in favor of his rival.

Johnson, who tried to cling to power in July despite the mass resignation of ministers over a series of scandals, told journalists and politicians gathered in Downing Street early on Tuesday that the country must come together.

“It’s time to end politics, folks,” he said in his farewell speech. “It’s time we all got behind Liz Truss and her team and her show.”

After speaking at the famous black gate, he left London to travel to north-east Scotland and tender his resignation to the 96-year-old queen at Balmoral Castle, before Truss took over from him.

Johnson used his valedictory address to brag about his successes, including an early vaccination program during the coronavirus pandemic and his early support for Ukraine in its battle against Russia.

He also listed “getting Brexit done” as one of his main achievements, although polls now show that most people think leaving the European Union was a mistake.

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