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This Is Why

Tory U-turn: Has the government lost credibility?

This Is Why

Sky News

News, Daily News, News Commentary

4.0552 Ratings

🗓️ 3 October 2022

⏱️ 27 minutes

🧾️ Download transcript

Summary

Chancellor Kwasi Kwarteng and PM Liz Truss have made a U-turn on the decision to give the wealthiest 1% of earners a tax cut after facing a backlash.

On the Sky News Daily, Niall Paterson explores the political consequences of the U-turn with political correspondent Liz Bates and discusses how the markets are responding with economics editor Ed Conway.

Plus, Catherine MacLeod, a No.11 special adviser during the 2008 recession, explains how a government should react during a time of financial crisis.

Podcast producers - Rosie Gillott
Digital producer - David Chipakupaku
Editor - Philly Beaumont

Transcript

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0:00.0

Pain in my hip.

0:02.0

I keep feeling dizzy.

0:04.9

I'm getting migraines more often.

0:09.6

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0:12.4

by simply sending your symptoms and requests

0:15.2

through their website or the NHS app.

0:18.2

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0:24.3

Julia, how do you spell vertebrae? Oh, just tight pain in the neck. Quasi Quoting strode to the podium slowly.

0:34.9

After all, as one way to put it, any sudden movement might spook the markets.

0:39.3

Thank you, conference. After more than a week of sticking to their guns, of holding the course,

0:45.1

of not being afraid to make unpopular decisions, the Chancellor, and by implication, the Prime Minister,

0:51.2

held their hands up and admitted defeat. What a day. It has been tough, but we need to focus on the job in hand.

1:00.6

He couldn't quite bring himself to say it out loud, but the much-vunted removal of the top rate of

1:05.9

income tax will now, rather embarrassingly, not go ahead.

1:10.0

That they've had to make the announcement at

1:11.7

their party conference takes us into the realms of the ridiculous.

1:15.6

But I can be frank, I know the plan put forward only 10 days ago has caused a little turbulence.

1:22.3

I get it. I get it. We are listening and have listened.

1:27.5

It's being built as an example of the government doing the right thing, listening to the public

1:32.3

and acting accordingly. And if you believe that, I've got a bridge over the Thames that might

1:37.3

interest you. After all, it's not as if the instability in the markets was the first sign

1:41.8

that something had gone wrong. There were those in the Treasury warning that giving tax breaks to the richest in a cost of living crisis

...

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