“Tax cuts are increasingly talked about,” Liz Truss said at a news conference

London
CNN Business
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British Prime Minister Liz Truss will hold a news conference on Friday amid widespread speculation that she is preparing to abandon much of her economic strategy unveiled just three weeks ago.

Its “mini-budget”, presented by Finance Minister Kwasi Koarting on September 23, promised massive tax cuts and increased borrowing, sending the pound and government bonds crashing on fears this could happen. More juice swell At a time when prices are already rising at their fastest rate in nearly 40 years.

pay it Bank of England To warn of serious risks to financial stability in the UK and to advertise Three separate interventions To calm a bond market crash that has put some UK pension funds on the brink of default.

The unfunded tax cuts have come under fire from investors, the International Monetary Fund, credit rating agencies and members of Truss’ own party, some of whom are now said to be Talking about removed Only five weeks into her premiership.

Kwarteng returned from the International Monetary Fund meeting in Washington, D.C., on Friday for discussions with Truss about the plan.

“Following the conclusion of a successful series of meetings at the International Monetary Fund, the chancellor returns to London today to continue work at a rapid pace on the medium-term financial plan,” the British Treasury said in a statement.

With bond prices rising, the yield on the UK’s 30-year government debt fell to 4.3%, down from a high of more than 5% in recent days, while the pound last traded at $1.12. It had fallen to a record low near $1.03 on September 26.

A 65 billion pound ($73.3 billion) emergency bond-buying program launched by the Bank of England is set to expire on September 28, leaving many market participants concerned that bonds could fall again – driving up foreclosure rates. Real Estate and Other Borrowing Costs – If the government doesn’t quickly explain how it plans to pay for the tax cuts.

Under pressure, Kwarteng already did Submitted his full budget statement to October 31, more than three weeks before the planned date. But investors may not be willing to wait that long for reassurance about the state of Britain’s public finances.

The UK government already has Abandoned plans to cut the highest rate of income taxAnd, media reports suggest, plans to scrap business tax increases could also be rethought.

A Truss spokesman denied Thursday that the government would be making “another turn,” but Commerce Secretary Greg Hands said on Friday “let’s wait and see” when asked the same question.

“You won’t have long to wait October 31st for the chancellor to make those plans,” Hands said in an interview with Sky News.

Luke McGee and Zahid Mahmoud from London and Xiaofei Shaw from Paris contributed to this article