With the resignation of the U.K. Prime Minister Liz Truss, earning the dubious distinction of being the shortest-tenured PM of the U.K., Truss was facing increasing opposition from her fellow conservative members. They accused her of being unable to run the country’s economy properly.
Why Did The Truss Administration Fall?
The going was not easy for Truss since the beginning of her term, and her administration was involved in one controversy after another. The worst came after she announced the mini-budget, and the economy crashed. It also had a ripple effect on the Crypto Sector.
The mini-budget had proposals for unfunded tax cuts. The once invincible Pound Sterling values plummeted as the investors lost faith in the currency and its stability. The market volatility also put several pension funds at risk. The Great British Pound tanked, and values reached their nadir.
Kwasi Kwarteng, the finance minister under Truss, who lost his position, was the first casualty of the economic woes. Tory MP has scant faith in the ability of Truss to take the U.K. economy out of the rut it has landed. It was a series of events post-pandemic that led to soaring inflation and a threat of recession very much a possibility.
The first act of the new incumbent Finance Minister, Jeremy Hunt, was to roll back most of the provisions made by the Truss budget. Despite the firefighting efforts, the Truss administration could not be saved.
Hope For Crypto Sector
As market volatility is expected, there is a small window of hope for the Crypto Sector, especially if Rishi Sunak, a British politician who was the Chancellor of the Exchequer from 13 February 2020 to 5 July 2022 Chief Secretary to the Treasury will become the next PM. Mr. Sunak is known for his progressive economic policies and is a prominent advocate of Blockchain technology and the Crypto Sector.