United Kingdom | Truss assures that his tax cut plan will bring long-term growth

by time news

British Prime Minister Liz Truss insisted on Thursday that his controversial tax planwhich includes tax cuts especially for companies and high incomes, it will guarantee “long-term economic growth”, despite its negative impact on the pound.

“We must put this country on a long-term growth trajectory, while maintaining fiscal discipline,” he said on his Twitter account.

“Reducing taxes will boost investment, which will create jobs and opportunities for all”he added.

Truss has spent the day defending his “Growth Plan” in local media, which since it was announced last Friday has caused the collapse of the pound sterling and an emergency intervention by the Bank of England to stabilize the public debt bond market long-term.

The conservative prime minister maintains that the tax cuts, also criticized by the International Monetary Fund (IMF) for being inappropriate in an inflationary context and promoting inequality, are necessary to “get the economy moving”, although acknowledged that “it will take time” for the benefits to be noticed.

Truss recalled that her government has made an effort to help households by providing guaranteed loans to electricity companies in order to reduce energy bills.

the prime minister however, it has not specified how the public debt that will accumulate with all these measures will be reducedwhich has caused the turbulence in the market.

Finance Minister Kwasi Kwarteng has indicated today that ministries will be asked to cut spending and the Office for Budget Responsibility (OBR), which oversees public finances, will be asked to prepare a report by October on growth, inflation and debt.

Kwarteng expects to specify his medium-term net debt reduction plan in a parliamentary intervention on November 23 when, according to experts, it is possible that he will announce cuts in public spending or even some change in his controversial program.

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