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.

Company MarketCheese
Period: 30.04.2026 Expectation: 400 pips
Investing in Brent crude upon breaking above $101 per barrel
Yesterday at 11:09 AM 30
Period: 24.04.2026 Expectation: 680 pips
USDCAD hits new three-week low amid weaker demand for dollar
Yesterday at 10:28 AM 24
Period: 30.06.2026 Expectation: 5200 pips
Selling GBPUSD down to 1.30000
Yesterday at 07:02 AM 24
Period: 24.04.2026 Expectation: 1050 pips
AUDCAD drops due to rising stagflation risks in Australia
Yesterday at 06:56 AM 18
Period: 30.04.2026 Expectation: 1100 pips
Investing in USDJPY with 160.00 in view
16 April 2026 51
Gold sell
Period: 23.04.2026 Expectation: 20000 pips
Selling gold with $4,630 in sight amid monthly highs and declining volatility
16 April 2026 69
Go to forecasts