Fitch writes off the UK sovereign note

“We believe that the Chancellor’s (finance minister) statements hinting at the possibility of additional tax cuts and the likely modification of the fiscal rules legislated in January reduce the predictability of fiscal policy.”

Prime Minister Liz Truss vowed on Wednesday to steer Britain toward growth as she closed her ruling Conservative party’s tumultuous annual conference with a staunch defense of her controversial economic plan.

A month after succeeding Boris Johnson, the new Conservative leader turned against financial markets, voters and prominent personalities in her own party with a program of tax cuts that will increase the already very large public debt.

Under pressure from the party, Truss and his finance minister, Kwasi Kwarteng, had to abandon on Monday a highly controversial abolition of the 45% top tax bracket for incomes above 150,000 pounds ($170,000) a year, accused of favoring to the rich when many Britons sink into poverty.

At the close of the congress, Truss once again defended his ultraliberal shock plan to reactivate a British economy threatened with recession and mired in runaway inflation that is putting many families in difficulty.

The fact of not having specified his economic plan failed to calm the markets, which reacted with a sharp drop in the pound sterling, with a loss of 2.01% against the dollar, reaching a minimum of 1.1241 dollars after his speech.