U.K.’s Liz Truss reverses tax cuts, sacks treasury chief

The embattled British prime minister pulled back promised corporate tax cuts on Friday. She also sacked her treasury chief, Kwasi Kwarteng, replacing him with former Cabinet minister Jeremy Hunt. The moves come after weeks of financial turmoil challenging her administration. Truss, a member of Britain’s Conservative Party, took office last month on promises to cut taxes and spur growth. But without a clear plan, the prospect of cutting taxes by roughly 45 billion pounds sent the economy reeling. She’s now pulling back some 20 billion pounds of the originally planned tax cuts.

What will happen next? In parliament, members of the Liberal Democrats opposition party have asked for an emergency weekend meeting to get details on the government’s economic plan. Truss will again be tested Monday when trading resumes in the financial markets. The BBC reported that senior Conservatives are plotting to replace Truss. That would mean replacing their second leader this year after forcing out Boris Johnson in July.

Dig deeper: Listen to Nick Eicher’s conversation with David Bahnsen on The World and Everything in It podcast critiquing financial journalism.