12 July 2022 - Bailey angry about taxes being a political pawn

The UK will have a new Prime Minister on September 5th. The rules of the contest to be the leader of the Conservative Party were revealed last evening. There will be two votes this week and a third if needed will take place next Monday. The deadline for the Parliamentary Party to select the final two Candidates is July 21st which coincides with the Parliamentary Summer recess and a vote of the wider membership will then take place, with the winner announced on 5th September. There are currently eleven candidates, with a twelfth, Home Secretary Priti Patel, having until later today to declare her candidacy. The major focus of the early hustings has been taxation with several candidates having announced hope they will lower the tax burden on both businesses and individuals. The exception to this is former Chancellor and current favourite to win the vote, Rishi Sunak. He has said that he is against an immediate tax cut until inflation is brought under control. The Bank of England Governor has been critical of the promises being made by leadership candidates, believing that the independence of the Central Bank is threatened by announcing tax cuts at any time other than a formally discussed budget at which the Bank’s input is requested. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.