The British pound has fallen to an all-time low against the U.S. dollar after the government pledged a sweeping package of tax cuts that have fueled concerns about its economic policy. The pound fell as low as $1.0373 before rallying to above $1.08
Opposition Labour Party economy spokeswoman Rachel Reeves accused the government of “a return to trickle-down economics, an idea that has been tried, has been tested and has failed.”
The new and untested Truss, who replaced Boris Johnson as prime minister on Sept. 6, also faces pressure from a nervous Conservative Party, which faces an election within two years.Some Conservatives have welcomed the tax-cutting moves as a return to free-market values after years of state intervention in the economy during the coronavirus pandemic. But others worry it is unconservative for the government to rack up huge debts that taxpayers will eventually have to pay.
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