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Weakened, Liz Truss defends her “responsible” tax approach

2022-10-04T08:51:41.823Z

During an interview broadcast on the BBC, the head of the British government promoted her “responsible” fiscal approach in a difficult context since her recently presented “mini-budget” met with numerous criticisms.



British Prime Minister Liz Truss on Tuesday defended her "

responsible

" fiscal approach as, according to the press, her finance minister is preparing to bring forward the publication of the figures for her controversial budget package.

In an interview broadcast Tuesday morning on the BBC, the British head of government defended her “

responsible

” tax approach, while the “

mini-budget

” presented on September 23 drew a host of criticism for her tax cuts financed by debt.

Faced with the outcry, his government had to announce on Monday that it was renouncing, under the pressure of its own majority, to abolish the highest tax bracket, a measure which crystallized the opposition because intended for the richest taxpayers.

"

I lobbied the Chancellor hard on this and, to his credit, he listened

," the head of the House Treasury Committee, Mel Stride, said in a statement.

It is the absence of figures on the amount of the mega budget package, of projections on the impact of this massive spending plan, without planned spending cuts and with debt financing at a time when inflation is soaring and rates are rising, which set financial markets on fire last week.

Read alsoUnited Kingdom: the humiliating setback of Liz Truss on the tax cut

The central bank had to intervene urgently by buying up long-term Treasury bonds to avoid a bankruptcy of pension funds and the International Monetary Fund (IMF) launched a scathing appeal to reduce spending and not to increase inequalities, in the midst of a crisis in the cost of living, through tax cuts favoring the richest.

But another subject promises to be delicate for the government, that of social benefits.

On private radio LBC, the head of government indicated that "

no decision

has yet been taken about the basis on which they would be revalued as inflation nears 10%.

Already, the head of the Treasury Committee, Mel Stride, has warned on the BBC that he would think twice if he had to vote for an increase in these benefits aligned with wages rather than the inflation, again raising the risk of a rebellion in the ranks of the majority.

Source: lefigaro

All business articles on 2022-10-04

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