Prime Minister Liz Truss is seeking to rally MPs around her tax cuts following political infighting and market turmoil.
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LONDON – British Prime Minister Liz Truss on Wednesday insisted that tax cuts are “the morally and economically right thing to do,” doubling down on a series of debt-financed economic reforms that have caused wars within the party and market turmoil.
Speaking at the Conservative Party Conference, Truss said she was determined to “upgrade our country the Conservative way” in a bid to unite MPs around a plan to cut taxes and consolidate waning power. her reduction.
“Tax cuts are the moral and economic right thing to do,” Truss said, adding that the Conservatives “will always be the party of low taxes.”
She said: “The tax cuts help face the global economic crisis, providing a sign that Britain is open for business.
“For too long, our economy hasn’t grown as strongly as it should have,” she continued. “We have to upgrade our country in a Conservative way.”
“We’re going to keep the country’s finances strong,” she said, in an apparent nod to her political idol, Margaret Thatcher, aka the Iron Lady. “I have three priorities for our economy: growth, growth and growth.”
The four-day conference, held in Birmingham, England, was beset by cabinet infighting and hostilities as longtime Tory lawmakers voiced opposition to economic policies that “focus on growth” of the newly formed Truss.
The latest revolt focuses on Truss’ resistance to inflation-matched welfare increases – currently at 9.9% in the UK – abandoning a promise made by his predecessor Boris Johnson.
Instead of, she is said to have plans to increase support in line with average income growthincluding bonuses, is about 5.5%, according to the latest data.
Truss has said the proposals would save the government billions of pounds while “putting more people to work.” But party members, including right-wing supporters, have warned the Prime Minister against cutting the incomes of Britain’s poorest people as the country faces a dire cost of living crisis. most in a generation.
House of Representatives leader Penny Mordaunt, who ran against Truss in this summer’s Tory leadership contest, said Tuesday she favors “keeping up with inflation” benefits, joining a choir Members of parliament have warned that the cuts could spur a party revolt. .
Indeed, some Tories have warned that the prime minister – less than a month into the job – is now fighting for his survival amid plummeting poll ratings.
Grant Shapps, a former transport minister, said on Tuesday that maybe the Conservatives could change leadership again if Truss “didn’t do well.”
Britain’s opposition Labor Party is seen as having a 33-point lead over the Conservatives on Thursday, days before the Conservative Party Conference, According to a YouGov poll.
Still, Truss remained committed to its policies on Wednesday, saying: “Not everyone will support the change, but everyone will benefit from this outcome.”
The prime minister’s speech was interrupted by screams from environmental protesters, who were escorted from the audience after Truss demanded: “Get rid of them.”
Backlash on tax cuts
It follows controversy over last month’s announcement of a string of funding tax cuts – estimated to total £43 billion ($49 billion) – that critics say disproportionately benefit for the rich and businesses.
Truss has argued that the cuts will boost growth at the top end of the economy, with a direct impact on society as a whole.
Amid the backlash, the government on Monday forced to abandon the plan to abolish the highest income tax rate of 45%in an attempt to quell financial markets after the proposals caused chaos for UK assets.
British Prime Minister Liz Truss admitted she should have laid the groundwork better for the recent “growth-focused” tax cuts that have roiled financial markets.
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Announcement of decision in a tweetFinance Minister Kwasi Kwarteng said “we understand and we have listened”, adding that the plans have become a “distraction” following increased backlash from both sides of the main aisle. treat.
Tax cuts – one of supply side reforms introduced in the September 23 “small budget” – caused chaos in the financial markets, causing the pound to hit record low $1.0382 and yields on UK 10-year government bonds jumped as high as 4.6%.
As a result, the Bank of England was forced to step into a £65 billion bond-buying scheme to support UK pension funds.
