September 29, 2022
2 mins read

UK PM Liz Truss defends her mini-budget

Truss denied that the tax cuts were solely benefiting the wealthy, saying that “simply isn’t true” and insisted that she was pursuing the “right plan”…reports Asian Lite News

UK Prime Minister Liz Truss has defended last week’s mini-budget, saying it was a necessary “decisive action” that had to be taken.

In her first comments on the market turmoil since the September 23 announcements made by Chancellor Kwasi Kwarteng, Truss on Thursday defended her plans to cut taxes and increase borrowing, saying “we had to take decisive action”, reports the BBC.

The Prime Minister also said the government was working to protect people from high energy costs and was prepared to take “controversial and difficult decisions” to get the economy moving.

Growth won’t “come through overnight”, she said, adding that the mini-budget puts the UK on a “better trajectory for the long-term”.

Truss denied that the tax cuts were solely benefiting the wealthy, saying that “simply isn’t true” and insisted that she was pursuing the “right plan”.

Responding to concerns over pension funds following the announcements, Truss said the Bank of England (BoE) does a “very good job” of looking after pensions.

The Prime Minister said her energy package will help reduce overall inflation, which will subsequently reduce food prices as well.

Discussing fracking, Truss said her government would only press ahead in areas “where there is local community support”, the BBC reported.

The announcements made by Kwarteng, include cancelling the planned increase in corporation tax to 25 per cent and keeping it at 19 per cent, and reversing this April’s 1.25 percentage point rise in National Insurance contributions.

He also announced a 1 per cent cut to the basic rate of income tax to 19 per cent in April 2023, one year earlier than planned.

The 45 per cent additional rate of income tax on earnings above 150,000 British pounds ($163,000) will also be scrapped.

Kwarteng set a target of 2.5 per cent economic growth alongside these plans.

According to the Chancellor, the tax cuts and reforms, the biggest package in generations, “send a clear signal that growth is our priority”.

The 45-billion-pound tax cut is the biggest since 1972.

Following the announcement, the pound fell more than 3 per cent to a 37-year low against the dollar as investors worried that large-scale tax cuts would ramp up public borrowing, bring much fiscal uncertainty and push up already high inflation.

ALSO READ: Truss thanks Saudi Crown Prince

Previous Story

UK govt announces £1.5 bn to improve energy efficiency

Next Story

India proposes 15% duties on items imported from UK  

Latest from -Top News

Hindu Temple Vandalised in Melbourne

Confirming the incident, Victoria Police mentioned they are investigating “four linked incidents in Boronia,” including the temple and two restaurants….reports Asian Lite News In a deeply disturbing incident of racial violence, a

Pakistan: Monsoon Mayhem Hits Punjab Hard

Floodwaters from five major rivers inundate villages across Pakistan’s Punjab, damaging crops, displacing families, and triggering emergency evacuations as authorities brace for more monsoon rain….reports Asian Lite News Low-to-medium intensity flooding across

Beijing: Our River, Our Sovereignty!

China defends its Yarlung Zangbo dam amid Indian and Bangladeshi concerns, but geography and hydrology experts say India retains the upper hand in river control and flow….reports Asian Lite News China has

From Exile to Empty Tents

Over a million Afghans have been forcibly deported from Iran this year, overwhelming Kabul’s returnee camps as families plead for aid, shelter, and international action….reports Asian Lite News Seven years after leaving

India Sends Medics After Dhaka Tragedy

India rushes top medical experts to Bangladesh after deadly jet crash at a Dhaka school leaves 29 dead and dozens critically injured, mostly children….reports Asian Lite News In a gesture of regional
Go toTop

Don't Miss

UK, Ireland agree to maintain smooth post-Brexit trade

Prime Minister Boris Johnson and his Irish counterpart Micheal Martin

UK economy grows at double forecast pace

The economic data brings the UK’s annual GDP growth to