British Prime Minister Liz Truss admits mistakes in the mini-budget – but stands by the tax cut package

UK Prime Minister Liz Truss has acknowledged flaws in the latest mini-budget but said she stands by her tax cut plan as she refuses to rule out public spending cuts.

He admitted she could have done more to prepare the ground for Kwasi Kwarteng’s financial report, which spooked markets, sending the pound plummeting and forcing a £65 billion intervention from the Bank of England to restore order.

Ms Truss said the mini-budget’s most controversial measure – removing the 45 per cent tax rate on income over £150,000 – was not discussed with Cabinet but was a decision by the Chancellor.

As the Conservative Party Conference gets underway in Birmingham, Ms Truss faces the difficult task of reassuring markets and Tory members unsettled by the market turmoil and the collapse in opinion polls since she took office.

“I want to say to people that I understand their concerns about what happened this week,” she told BBC show Sunday With Laura Kuenssberg.

“I stand by the package that we announced and I stand by the fact that we announced it quickly because we had to act.

“But I accept that we should have laid the floor better … I learned from it and will make sure we do a better job of laying the floor going forward.”

The move to scrap the top income tax rate for the country’s top earners during a cost-of-living crisis and pay for it through borrowing has been widely criticized, including by some Tory MPs.

During the interview, Ms Truss made Mr Kwarteng the owner of the controversial decision and said it had not been discussed with the wider cabinet.

“No, no, we haven’t. It was the Chancellor’s decision,” she said.

Aware that pensions will rise in line with inflation, she said she had committed to “triple lockdown” to protect her from price hikes.

But she refused to give the same guarantee for social services and state budgets.

Not ruling out backtracking on Boris Johnson’s pledge to increase pension payments in line with inflation, she said: “That’s something the Secretary for Works and Pensions (Chloe Smith) is looking into at the moment.

“She will make a decision on that and we will announce that this fall.”

Ms Truss defended the dramatic break with previous Conservative policies on public finance management, despite not having her own mandate in a general election.

She said people voted for a “different future” in 2019, with hopes for investment in cities and communities, higher wages and economic growth.

“That will deliver our plan. I’m confident it will deliver. I am absolutely confident that what we are doing to accelerate road projects, free up city investment and lower taxes will make a difference,” she said.

“I’m not saying it won’t be difficult – we are facing a very turbulent and stormy period – but it will hold, it will deliver what we promised.” British Prime Minister Liz Truss admits mistakes in the mini-budget – but stands by the tax cut package

Fry Electronics Team

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