Less than a month after her arrival in Downing Street, the new head of government maintained on the BBC set that her “mini-budget” based on massive tax cuts for the richest was “the right decision” .
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His “mini-budget” presented on September 23 was “the right decision”. British Prime Minister Liz Truss defended her controversial policy of massive tax cuts on Sunday (October 2nd) on television, acknowledging, however, communication errors after her budget announcements turned into a financial fiasco, in the midst of a cost of living crisis. “I still stick to the plan we announced and I maintain that we announced it quickly because we had to act, but I recognize that we should have prepared the ground better,” she told the BBC from Birmingham, where the Conservative Party’s annual conference begins.
Finance Minister Kwasi Kwarteng announced last week a “mini-budget” to deal with the cost of living crisis and the near-single-digit inflation that is strangling Britons, but its announcements based on direct aid for energy bills and massive tax cuts for the most rich have aroused the incomprehension of the financial markets which fear an explosion of the debt.
“I think it was the right decision to increase borrowing this winter,” repeated Liz Truss after a chaotic week in which the pound hit an all-time low, triggering intervention from both the International Monetary Fund and the Bank of England.
“Of course we are going to have to bring the debt down to a certain percentage of GDP in the medium term, and I have a plan for that. But what would have been a mistake would have been not to act”she said without giving more details on how she intended to go about it.