29 September 2022 | Other

According to Truss, tax cuts in Great Britain while market crashes are the "right plan"

The UK is enduring a huge package of unfunded tax cuts by its government. The consequence was the fall of the pound sterling. Prime Minister Liz Truss defended these cuts.

On Thursday, there was a series of local BBC radio interviews where Truss spoke about facing extremely difficult economic times on a global level. She said that now they have to make controversial and difficult decisions for the economy to grow, so urgent measures had to be taken.

Truss believes that now is not the time to change decisions, and that higher taxes will help to lead the United Kingdom into recession.

She states that she is absolutely sure that the government's decision is correct. "This is the right plan," she added.

On Friday, Treasury Chancellor Kwasi Kwarteng announced the largest set of unfunded tax breaks for a half century. After that, the market began to be crushed. This is the first time Truss has spoken publicly about it.

Under pressure from this event, the Bank of England arranged a dramatic intervention to prevent a crash in the stock market. The International Monetary Fund appealed to her to reconsider the plans.

The fiscal plans have also been publicly criticized by high-ranking British leaders. And the government was blamed for the fall of the pound and the worsening of British inflation forecasts by Simon Wolfson, a fellow Conservative and head of retail giant Next Plc.

U.S. Commerce Secretary Gina Raimondo expressed her opinion on Wednesday that Truss' commitment to cut taxes will not accelerate economic growth. And according to Lawrence Summers, former United States Treasury Secretary and now a paid employee of Bloomberg Television, Britain has the worst economic policy of any major country.

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