Truss told Tapper that by cutting taxes, her government has been “incentivizing businesses to invest and we’re also helping ordinary people with their taxes.”
And while the cuts were expected, critics warn they will be more beneficial to the wealthy than the majority of British society. Shortly after Truss’s finance minister, Kwasi Koarting, announced the cuts on Friday, pound sank Nearly 2.6% to its lowest level against the dollar since 1985.
Britain’s Treasury said the cuts, which include lowering the top rate of income tax to 40% from 45%, lowering fees paid on home purchases, and eliminating a planned increase in business tax, will wipe out 45 billion pounds (50 US dollars). billion) of government revenue over the next five years.
When pressed for responsibility for her economic plan, Truss told Tapper: “I don’t really 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 taxation. Currently, we have the highest in rates. We’ve had taxes for 70 years.”
Although public revenue has been hit, Truss emphasized in the interview that her government will still help citizens pay energy bills this winter.
“We have also put in place a set 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 expected to be a harsh winter. Inflation rose above 10% in July for the first time in 40 years, driven by the rising cost of energy and food. Home energy bills are already up 54% this year and could go up even more.
Truss has also been criticized for making the pledge while refusing to tax energy companies in return for windfall gains. Instead, the government will rely on borrowing to cover the cost, which the opposition has described as putting the cost on the national credit card.
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