The British Prime Minister defended her controversial policy of massive tax cuts on Sunday (October 2nd) on television, acknowledging, however, communication errors after her budget announcements turned into a financial fiasco in the midst of the cost of living crisis.
Less than a month after her arrival in Downing Street, the new head of government, more unpopular than ever, said on the BBC set in Birmingham, where the annual Conservative Party conference begins, that her “mini-budget” presented on September 23 was “the right decision”.
“I still stick to the plan we announced and I maintain that we announced it quickly, because we had to act, but I recognize that we should have prepared the ground better”she said.
Finance Minister Kwasi Kwarteng announced last week a “mini-budget” to deal with the cost of living crisis and inflation (nearly 10%), which are strangling the British, but its announcements based on direct aid for energy bills and considerable tax cuts for the richest have aroused the incomprehension of the financial markets, which fear the explosion of the debt.
“I think it was a good decision”
“I think it was the right decision to increase borrowing this winter”repeated Liz Truss after a tumultuous week in which the pound hit an all-time low, triggering intervention from both the International Monetary Fund and the Bank of England.
“Of course we are going to have to reduce the debt to a certain percentage of GDP in the medium term, and I have a plan for that. But what would have been a mistake would have been not to act.she said without giving more details on how she intended to go about it.
After barely three weeks in Downing Street, Liz Truss is more unpopular than ever with the British – 51% of them believe that she should resign, according to a YouGov poll – and does not unite more in her Conservative ranks. Some Tories are distressed by his budgetary policy and do not hesitate to say so as the party’s annual congress begins on Sunday, in a gloomy atmosphere and in sparse ranks.
“At a time when people are suffering and worried about their loans and the amount of their allowances, having the main tax measure to reduce taxes for the richest is to put forward bad values”Conservative MP Michael Gove told the BBC. “I don’t think that’s a good thing”he added on Sunday when asked if he would vote for this budget in Parliament.
