James O'Brien reacts to 'humiliating' U-turn by Truss and Kwarteng, saying they've lost credibility 'probably forever'

3 October 2022, 13:02

James O'Brien says Liz Truss and Kwasi Kwarteng have lost credibility 'probably forever'

By Madeleine Wilson

James O'Brien reacts to Liz Truss' government's "humiliating" U-turn on plans to scrap 45p tax rate

It comes as the pound has bounced back overnight after a U-turn on Kwasi Kwarteng’s plan to abolish the top rate of income tax.

The Chancellor’s decision to axe the 45p tax rate saw the pound fall to an all-time low of 1.03 US dollars.

But last night, sterling surged to 1.13US dollars at one stage, recovering ground lost in the market when the controversial mini-budget was announced.

This morning it pared back some of the gains, trading at 1.12US dollars.

Read more: Kwarteng fails to rule out further U-turns after humiliating 45p tax cut reversal

James O'Brien told listeners: "There’s no algorithm, there's no calculation, there's no mathematical formula for deciding what credibility is or rather where it goes and they've lost it probably forever

“Whether or not they lost it before or after this U-turn is a question for the ages my money is on before.”

James said the U-turn may have made things worse, “it doesn't sound credible, we’re doing it because everyone’s talking about it.”

James remarked: "Kwarteng and Truss are now strangers."

Read more: Tax u-turn was the 'right thing,' CBI chief says following Chancellor's announcement