British Prime Minister Liz Truss insisted that her strategy is the best strategy despite stressing that her government’s recent choices to lower the tax rate were handled poorly and caused a week of chaos in the financial markets.
She added that Treasury Secretary Kwasi Kwarting made the decision to remove the highest rate of income tax and did not consult her Cabinet before making it.
I acknowledge that we should have prepared the revisions more effectively, but I still support the package that we announced, she continued.
In order to streamline its operations, the British government announced a review of its tax system. In addition to lowering the basic rate of income tax for ten years, it also proposed lower corporation taxes within specific areas.
In an effort to spur economic growth, the British Finance Minister Kwasi Quarting stated on Friday that the government would not proceed with a plan to raise corporate tax to 25%, but rather would maintain it at 19%.
The British pound hit a record low after the new tax cut plan was announced, government borrowing costs increased, and the Bank of England intervened to stop a gold market meltdown.
Liz Truss: I regret the choice to decrease taxes.
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