Challenged after a month in power, the British Prime Minister did an about-face, announcing on Friday that she would finally increase this tax, as promised by the previous Conservative government led by Boris Johnson.
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“Clearly some parts of our mini-budget were going too far too fast compared to what the markets expected.” British Prime Minister Liz Truss announced at a press conference on Friday October 14 that she was abandoning her plan not to increase corporate tax in order to “reassure the markets”. This decision comes a few hours after the dismissal of its finance minister, Kwasi Kwarteng.
In this new about-face on her economic program, Liz Truss has announced that she is resolving to increase corporate tax, as promised by the previous Conservative government led by Boris Johnson. She wanted so far to lower it from 25 to 19%. “What I did today was make sure we have economic stability in this country”defended the Prime Minister, who said to herself “absolutely determined to hold on” his promise to“stronger growth” for the UK economy.
The Prime Minister is in the hot seat after 38 days in power. The concessions and the mini-reshuffle are intended to give him some breathing room, especially in the conservative ranks. In the wake of his brief speech on Friday, the pound further accentuated its decline and the cost of British debt, which had been falling for several days, rose slightly.