British Prime Minister Liz Truss insisted on Thursday controversial tax planIncluding tax breaks, especially for companies and high income earners, It will guarantee “long-term economic growth” despite its negative impact on the pound.
“We must put this country on a long-term growth trajectory while maintaining fiscal discipline,” he said on Twitter.
“Reducing taxes will increase investment, which will create jobs and opportunities for everyone”added.
Truss spent the day advocating the “Growth Plan” in the local media; This plan has led to the collapse of sterling since it was announced last Friday and the Bank of England’s urgent intervention to stabilize the public debt bond market over the long term.
The conservative prime minister argues that tax cuts, which have also been criticized by the International Monetary Fund (IMF) for being inappropriate in an inflationary context and promoting inequality, are necessary to “move the economy.” admits it will “take time” for benefits to be noticed.
Truss recalled that his government is making efforts to help households by providing guaranteed loans to electricity companies to reduce their energy bills.
Prime minister however, it was not specified how the public debt that would accumulate with all these measures would be reduced.caused turbulence in the market.
Finance Minister Kwasi Kwarteng said today that ministries will be asked to cut spending and that the Office of Budget Responsibility (OBR), which oversees public finances, will be asked to prepare a report on growth, inflation and debt by October.
Kwarteng expects to outline a medium-term net debt reduction plan in a parliamentary intervention on November 23, according to experts. It is possible that he will announce cuts in public spending and even some changes to his controversial schedule..