Business & Economy

Truss defends mini budget saying ‘decisive action’ was necessary

London, Sep 29 (EFE).- The United Kingdom’s prime minister Liz Truss on Thursday defended the tax-cutting budget her conservative government has adopted saying “decisive action” was necessary to boost economic growth.

Truss made her first public statements in a series of interviews with the BBC after the mini budget outlined by new chancellor of the exchequer Kwasi Kwarteng last week sparked havoc in financial markets and sank the pound.

Kwarteng’s growth plan, which includes aggressive tax cuts, fiscal deregulation and a sharp increase in national borrowing prompted a rare and damning statement from the International Monetary Fund and forced the Bank of England to intervene to restore order in the government debt market.

Truss told several reporters at local BBC radio stations that she was prepared to make “controversial and difficult decisions” to move the national economy forward.

Truss insisted that “decisive action” was needed to protect the country from soaring energy prices and to boost growth.

The PM defended the mini budget’s measures saying they were necessary “to deal with inflation, to deal with the economic slowdown and to deal with the high energy bills.”

On Monday sterling plunged to a record low following Friday’s bombshell budget.

Kwarteng has been hosting crunch talks with London’s top financiers this week to calm markets after his measures sent the pound and UK bonds in freefall.

The chancellor is to share more details about the measures on November 23.

The IMF on Tuesday issued an unprecedented statement saying the measures would likely exacerbate the cost of living crisis.

The IMF added the November deadline would give prime minister Liz Truss’ government an opportunity “to consider ways to provide support that is more targeted and re-evaluate the tax measures, especially those that benefit high-income earners”.EFE


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