World

Liz Truss defends controversial tax cuts as pound falls

Truss told Tapper that by cutting taxes, her administration “encouraged businesses to invest and we also help ordinary people with their taxes.”

While the cuts were expected, critics warn they will be more beneficial to the wealthy than the majority of British society. Shortly after Truss Treasury Secretary Kwasi Kwarteng announced the austerity measures on Friday, the pound fell nearly 2.6% to its lowest level against the US dollar since 1985.

The UK Treasury said the cuts, including cutting the top income tax rate from 45% to 40%, cuts in duties paid on home purchases and the cancellation of a planned £45 billion ($50) business tax hike. would nullify. billion) from government revenues over the next five years.

Pressured by the responsibility of her economic plan, Truss told Tapper: “I don’t accept the premise of demand at all. The UK has one of the lowest debt levels in the G7, but we have one of the highest tax levels. Currently. we have a 70-year high in our tax rates.”

Despite the blow to government revenues, Truss confirmed in the interview that her government would still help citizens with energy bills this winter.

Read:The Queen’s Funeral Had Few Errors, But Australia’s Channel Nine TV Commentators Got Caught Out Identifying UK Prime Minister

“We have also put in place a package of measures to support consumers with energy prices, to ensure that no one has to pay more than £2,500 in their bills.”

Read:As Russian Losses Mount in Ukraine, Putin Gets More Involved in War Strategy

The pledge to help Britain pay their energy bills predates what is expected to be a brutal winter. Inflation rose above 10% for the first time in 40 years in July, driven by rising energy and food costs. Household energy bills have already risen by 54% this year and could be even higher.

Truss has also been criticized for making this promise while refusing to tax energy companies for their windfall gains. The government will instead rely on loans to cover the cost, which the opposition has described putting the cost on the country’s credit card.

Previous post
Heartbreaking Day Leaves Mortgage Rates Much Higher Than 6.29%
Next post
Ohio GOP Candidate J.R. Majewski Offers Novel Excuse for His Disputed Military Service