Caymans Post

A world within. A state apart.
Sunday, Mar 03, 2024

UK's Liz Truss Vows No Spending Cuts To Pay For Tax-Slashing Plans

UK's Liz Truss Vows No Spending Cuts To Pay For Tax-Slashing Plans

Liz Truss said she was "absolutely" committed to pledges made during the summer's Tory leadership campaign to maintain current spending

Britain's beleaguered Prime Minister Liz Truss vowed Wednesday not to cut public spending, once again defending last month's uncosted tax-slashing mini-budget that has sparked weeks of UK market turmoil.

Appearing in parliament for the first time since the contentious September 23 plans prompted economic upheaval, Truss said she was "absolutely" committed to pledges made during the summer's Tory leadership campaign to maintain current spending.

With currency, bond and other markets spooked by the extra borrowing earmarked to pay for tax cuts, fears have grown that Truss will slash government department budgets, returning to the unpopular austerity policy of a decade ago.

But the 47-year-old leader insisted that would not happen, while doubling down on her tax plans and reducing debt.

"What we will make sure is that over the medium-term the debt is falling," Truss told MPs, in only her second "Prime Minister's Questions" session in the House of Commons since succeeding Boris Johnson early last month.

"We will do that not by cutting public spending but by spending public money well," she added. Her policies would "protect our economy", she argued.

Truss also insisted her controversial economic package announced by Chancellor of the Exchequer Kwasi Kwarteng to reduce several different taxes would result in "higher growth and lower inflation".

'Lost in denial'


But the initial impact from it has been uniformly negative. The pound has plunged to unprecedented lows against the dollar, while government borrowing and mortgage rates have spiralled.

The Bank of England has been forced to make several emergency interventions in bond markets, while the economy unexpectedly shrank in August after slender growth the previous month amid a cost-of-living crisis and rocketing energy bills.

Labour leader Keir Starmer accused Truss of being "lost in denial" and "ducking responsibility" as she refused to acknowledge the economic fallout from her policies, instead blaming global factors such as the war in Ukraine for unsettling markets.

Media reports have suggested that the mini-budget -- already watered down with the scrapping of plans to axe the top rate of tax -- could be further revised during a line-by-line review.

But Truss's spokesman rubbished the claims immediately after her weekly House of Commons questions.

"We are committed to the measures that the Chancellor set out in the growth plan," he told reporters.

Truss was "firmly of the view that is the right approach to take to ensure we move away from low or no growth", he added.

Newsletter

Related Articles

Caymans Post
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
BBC Personalities Rebuke Accusations Amidst Scandal Involving Teen Exploitation
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
×