On Thursday, Liz Truss, the British prime minister, claimed that her country’s contentious mini-budget, which has caused considerable economic instability, was the “decisive action” required for long-term progress.
The newly elected leader insisted “controversial and difficult decisions” needed to be made to improve the situation in the UK during her first round of interviews with local BBC radio stations across the nation after the tax-cutting and high government borrowing measures were tabled in the House of Commons last week.
Truss was anxious to maintain the attention on the mainly positive decision to freeze gasoline prices for individuals and companies in the face of skyrocketing energy prices worldwide following the Russia-Ukraine crisis.
To assist people in getting through this winter and the one next, we have to move swiftly, said Truss.
“I recognize that households are having difficulty paying their gasoline costs, but we needed to move quickly to combat inflation, boost the economy, and get Britain going. Naturally, that entails making contentious and challenging decisions, but as prime minister, I am willing to do so because I value bringing our economy forward, she added.
Truss was frequently pressed on the falling value of the pound relative to the dollar and the need for the Bank of England to take extraordinary action to repurchase the nation’s long-term bonds. Still, he claimed that the tax cuts announced last week were the correct course of action.
“If we have more taxes amid challenging economic circumstances, they will probably cause a recession. I want people to keep their jobs and make more money,” she declared.
When asked if her government’s policies of lowering taxes for the extremely wealthy were fair to the larger population during a crisis in the cost of living, she added: “The truth is that everyone benefits when taxes are reduced across the board because doing so helps the economy expand. For far too long, however, the debate in this country has focused on distribution rather than how to do so.
“It is unfair to experience a recession, to live in a community where investments are not being made, and it is unfair if our high tax load prevents us from attracting well-paying employment in the future. That’s the unjust part.” Because there were “tough markets across the world,” according to Truss, who defeated previous Indian-origin Chancellor Rishi Sunak in the Tory leadership race earlier this month, the issue in the UK was not unique.
The interview rounds are planned ahead of the annual conference of the ruling Conservative Party, which will begin this weekend in Birmingham. Truss will attend the annual event, where the economy and ongoing turmoil are expected to dominate much of the plan.
Truss will attend the annual event, where the economy and ongoing turmoil are expected to dominate much of the plan, for the first time as party leader.