Liz Truss defended her government’s controversial tax cut announcement for citizens and businesses in an exclusive interview with CNN’s Jake Tapper.
Truss told Tapper that by cutting taxes, her government was “incentivizing businesses to invest and we’re also helping ordinary people with their taxes.”
While the cuts were expected, critics warn they will benefit the wealthy more than the majority of British society. Shortly after Trus Finance Minister Kwasi Kwarteng announced the cuts on Friday, the pound fell nearly 2.6 percent to its lowest level against the U.S. dollar since 1985.
The UK Treasury said the cuts, which include cutting the top rate of income tax to 40% from 45%, cuts in duty paid on house purchases and scrapping a planned rise in business taxes, would wipe out £45bn ($50 billion) of government revenue over the next five years.
Pressing responsibility for her financial plan, Truss told Tapper: “I don’t accept his premise at all—the premise of the question. The UK has one of the lowest levels of debt in the G7, but we have one of the highest levels of tax. We currently have a 70-year high in our tax rates.”
Despite the hit to public revenue, Truss confirmed in the interview that her government would still help people with their energy bills this winter.
“We’ve also put in place a package of measures to support consumers with energy prices, to make sure no one has to pay more than £2,500 on their bills.”
The pledge to help Britons pay their energy bills comes ahead of what is predicted to be a brutal winter. Inflation rose above 10% in July for the first time in 40 years, driven by rising energy and food costs. Household energy bills have already risen by 54% this year and could rise even further.
Truss has also been criticized for making this pledge while refusing to tax energy companies for their windfalls. Instead, the government will rely on borrowing to cover the cost, which the opposition has described as putting the cost on the nation’s credit card.
title: “Liz Truss Defends Controversial Tax Cuts As Pound Falls " ShowToc: true date: “2022-12-16” author: “Fredrick Nixon”
While the cuts were expected, critics warn they will benefit the wealthy more than the majority of British society. Shortly after Trus Finance Minister Kwasi Kwarteng announced the cuts on Friday, the pound fell nearly 2.6 percent to its lowest level against the U.S. dollar since 1985. The UK Treasury said the cuts, which include cutting the top rate of income tax to 40% from 45%, cuts in duty paid on house purchases and scrapping a planned rise in business taxes, would wipe out £45bn ($50 billion) of government revenue over the next five years. Pressing responsibility for her economic plan, Truss told Tapper: “I don’t accept the premise — the premise of the question at all. The UK has one of the lowest levels of debt in the G7, but we have one of the highest levels of taxes. She right now, we’re at a 70-year high in our tax rates.” Despite the hit to public revenue, Truss confirmed in the interview that her government would still help people with their energy bills this winter. “We’ve also put in place a package of measures to support consumers with energy prices, to make sure no one has to pay more than £2,500 on their bills.” The pledge to help Britons pay their energy bills comes ahead of what is predicted to be a brutal winter. Inflation rose above 10% in July for the first time in 40 years, driven by rising energy and food costs. Household energy bills have already risen by 54% this year and could rise even further. Truss has also been criticized for making this pledge while refusing to tax energy companies for their windfalls. Instead, the government will rely on borrowing to cover the cost, which the opposition has described as putting the cost on the nation’s credit card.
