Britain’s Prime Minister Liz Truss said on Tuesday she was ready to make “unpopular decisions” such as raising bonuses for wealthy bankers to prop up the country’s sluggish economy.
Speaking ahead of an emergency government budget statement on Friday, Truss said tax cuts were key to spur economic growth, even though they benefit the wealthiest more than the poorest.
“We have to make tough decisions to fix our economy,” Truss said.
“We have to look at our tax rates. So there is a need to make corporation tax competitive with other countries so that we can attract that investment. Truss, who has been prime minister for only two weeks – a period marred by the death of Queen Elizabeth II – is under immediate pressure to deliver on his promises to deal with a cost-of-life crisis heading towards Britain and a potential economy have to face. long recession,
It has already announced a cap on household energy bills, meaning the average cost of heating and electricity will be no more than £2,500 ($2,872) per year – far less than forecast. And she says businesses will get details of similar relief on Friday.
But the truce has refused to extend an unexpected tax on oil and gas companies imposed under Boris Johnson’s previous government, and is scrapping plans to raise the corporation tax.
Critics say his free-market, low-tax economic ideas, inspired by the likes of Margaret Thatcher and Ronald Reagan, are the wrong response to the crisis.
Truss, who is in New York to attend the United Nations General Assembly, confirmed that the budget statement would reverse an income tax hike brought in this year to help with health care and scrap plans to increase corporation tax.
He also clarified that the government would remove a limit on bankers’ bonuses imposed after the 2008 global financial crisis, aimed at attracting more jobs and money to London’s financial district.
“I do not accept the argument that cutting taxes is in any way unreasonable,” Truss told British broadcasters in an interview on the 102nd floor of the Empire State Building.
“We should set our tax policy based on what will help our country succeed – what is going to deliver to the economy that benefits everyone in our country. What I don’t accept is this That tax cuts for business generally don’t help people. Truss denied that his plans would hurt the already battered UK economy. The pound fell to nearly four-decade lows against the dollar. $1.14. He said his priority was to “get the economic fundamentals right”.
He acknowledged that Britain is facing “incredibly difficult” economic times prompted by Russia’s invasion UkraineWhich has pushed up global energy prices.
But she denied that her plans would hurt millions or even ordinary Britons and could prove electorally disastrous.
“I think in the next election the people working will judge me and my government, have I got a good job, is my wages increasing, have I seen an improvement in my city or my city?” he said. “That’s what people care about and I’m sure people will vote on it.” As she was speaking, and seemingly coincidentally, US President Joe Biden tweeted criticizing the type of economic policy of truss advocates. The two leaders are scheduled to meet on the sidelines of the United Nations summit on Wednesday.
“I am sick and tired of trickle-down economics. It never worked,” he said.