The British government is committed to fiscal discipline. That was the promise of the British Finance Minister Kwasi Kwarteng, who recently presented a huge package of measures to improve the purchasing power of the British.
However, there is no full coverage for those expenses. The minister made his promise during a meeting with bank executives ahead of presenting his medium-term budget plan on 23 November.
According to Kwarteng, the Treasury Department works closely with the Bank of England, the country’s central bank. However, the ministry’s statement did not reference the current market turbulence or the surprising intervention of the Bank of England in the bond markets earlier on Wednesday. Instead, these arose from concerns about the new budget plans of the cabinet of Prime Minister Liz Truss.
Kwarteng also discussed how he believes the plan will boost demand through tax incentives and reforms. This creates more opportunities and limits inflation, Kwarteng said.
The Treasury Department said the meeting was part of a series of roundtables ahead of a planned financial services deregulation package next month. Kwarteng stressed that a strong UK economy depends on a strong financial services sector.