October 7, 2022

Liz Truss defends controversial tax cuts as pound falls

2 min read


Liz Truss has defended his government’s controversial announcement for Tax cuts for citizens and businesses In an exclusive interview with CNN’s Jake Tapper.

Truss told Tapper that by cutting taxes, his government is “incentivizing businesses to invest and we’re also helping ordinary people with their taxes.”

While the cuts were expected, critics have warned that they will benefit the wealthy more than the majority of British society. Shortly after Truss Finance Minister Kwasi Kwarteng announced the cuts on Friday, The pound sank It is about 2.6 percent against the U.S. dollar since 1985, its lowest level since 1985.

The UK Treasury said the cuts, which include cutting the top rate of income tax from 45 percent to 40 percent, reducing duty paid on house purchases, and canceling a planned increase in business taxes. would wipe out £45 billion ($50). billion) exemption from government revenue over the next five years.

Pressed on responsibility for his economic plan, Truss told Tapper: “I don’t really accept the premise of the question. Britain has one of the lowest levels of debt in the G7, but we have One of the highest levels. Currently, our tax rate is at a 70-year high.

Despite the damage to public revenue, Truss confirmed in the interview that his government would still help citizens with their energy bills this winter.

“We’ve also put in place a package of measures to help consumers with energy prices, to make sure no one ends up paying more than £2,500 on their bills.”

The pledge to help Britons pay their energy bills comes ahead of what is predicted to be a brutal winter. Inflation rose above 10 percent in July for the first time in 40 years, driven by rising energy and food prices. Household energy bills have already risen by 54 percent this year and could rise further.

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

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