Liz Truss sticks by plan but admits mistakes, and says top-rate tax cut was chancellor’s idea | Politics News
Liz Truss has admitted that she “should have laid a better basis” for the government’s small budget cuts after the pound fell to a record low.
The Prime minister said she has “learned from that” and “will make sure in the future we do a better job of laying the groundwork”.
Mrs. Truss also doubled the number decided to eliminate the highest income tax rate (45%) because “it’s part of an overall package to make our tax system simpler and lower” – but admits the policy has not been discussed with the cabinet.
“It’s a decision the prime minister has made,” she said.
Liz Truss Stands for Small Budgets – Latest Politics
Ms Truss told the BBC’s Sunday program with Laura Kuenssberg: “I really support the package that we announced and I think we announced it quickly.”
It comes after a spike in government borrowing costs following last month’s fiscal event.
Stressing that her government has “a very clear plan”, Ms Truss said she understands “how worried people are” as the country faces a “turbulent and stormy time”. .
The prime minister then repeatedly refused to answer whether there would be cuts in spending on public services under her government and refused to pledge to increase benefits in line with inflation.
“This is something that the work and pensions secretaries are looking at,” she said.
Meanwhile, Conservative Party Chairman Jake Berry said “markets may overreact” to the new economic policy.
“Let’s see where the market is in six months’ time,” he told Sky News’ Ridge on Sunday’s programme.
Mr Berry also confirmed that Conservative MPs voting against the government’s tax cut plan would lose the whip.
It is reported that some Tory MPs are preparing to vote with Labor to block measures announced by the prime minister on September 23, including the repeal of the top income tax rate.
In a sign that the leadership is now indeed at odds with many of its own MPs over the small budget, former cabinet minister Julian Smith posted on social media: “First job of a congressman is to act in their interest. members and the national interest. We can’t clap for caregivers one month and cut taxes for millionaires months later.”
Mr Berry also called on Tory MPs to unite in support of Ms Truss and her programme, saying she had “a mandate both from our colleagues and from our membership”.
“I am sure that if we do that it will ultimately lead to lasting electoral success,” he said.
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The Conservative Mayor of the West Midlands, Andy Street, added that the government’s small budget showed “good leadership”.
“You can’t go on year after year without rethinking your core. It’s good business. It’s good leadership,” he told Sky News’s Ridge on Sunday’s programme.
He continued: “So there needs to be a different way of thinking. And a lot of investing in financial statements is about thinking differently.”
However, former Cabinet Secretary Michael Gove accused Ms Truss’ plans of “false merit” and hinted he could vote against the tax cuts in the Commons.
Mr Gove told the BBC that Ms Truss was right to admit that there was “a need to admit mistakes”, adding: “But there are cases where the head of government is not fully aware of the scale of change. necessary change.
“Yes, the energy package is the most important thing in the financial event, but overall the 35% of the additional money we are borrowing is not to cut energy costs, but to cut unpaid taxes. Fort.”
But the Prime Minister vowed to “capture the hearts and minds” of Tory MPs about her growth plan.
Ms. Truss also ruled out releasing projections from the independent Office of Budget Responsibility ahead of the prime minister’s midterm plan on November 23.
While she argued that the government “simply did not have time” to publish the OBR data along with Mr Kwarteng’s small budget.
It comes like Ms Truss and Tories approval ratings plummet again in a new poll – as Labor rose to a 19-point lead.
Opinion polls show 55% of voters disapprove of the new prime minister and only 18% approve, a figure worse than Boris Johnson’s final days in office.
Me Kwarteng fell out of favor after the pair doubled down on economic policies announced last week, with 55% also disapproving and 27% approving.
Mr Berry has rejected key Labor leads in recent polls, telling Sky News they will look “very different” close to the election.