UK Prime Minister Liz Truss has acknowledged Sunday that her cabinet mismanaged the announcement of her new tax cuts program that has triggered one of the most difficult weeks for British markets in recent months.
“I recognize that we should have laid the foundations of our plan better. We have learned from those mistakes and I think we still have time to course correct,” Truss said in an interview with the BBC.
Truss and his Chancellor of the Exchequer, Kwasi Kwarteng’s plan for cuts, the most aggressive in half a century, ended up pushing the risk premium on British debt close to that of Italy and forced the Bank of England to announce a forthcoming increase in interest rates.
Among other measures, the plan calls for the elimination of the 45 percent top rate (a decision for which Truss held Kwarteng responsible), the reduction from 20 percent to 19 percent of the basic rate, the elimination of the increase in corporation tax implemented by the previous Cabinet, and the cancellation of the current cap on bonuses received by bankers.
In just 20 days in office, Truss’s popularity has plummeted and only 15 percent of those polled by YouGov defend the British Prime Minister’s intentions.
All in all, and as she did on Saturday, Truss has stood firm on her proposals. “I believe we have made the right decision to deal with the extraordinary circumstances we face,” he said.