British Prime Minister Liz Truss on Wednesday said that the disturbance caused by her economic policies will prove beneficial in the long term.
London: British Prime Minister Liz Truss on Wednesday said that the disturbance caused by her economic policies will prove beneficial in the long term, delivering her first speech to the Conservative leaders to try to reinstate her declining influence
Less than 24 hours into her party’s annual conference, Truss was forced to make a U-turn on one of her tax cuts. Weakened by this setback, Truss will continue to insist that her plan is the best one to address the long list of problems facing Britain.
However, with lawmakers empowered after forcing a reversal of the top-rate tax cut, she now faces a battle over how to fund her policies, potentially diluting her “radical” agenda.
“That is why I am committed to adopt a fresh strategy, and that will free us from this cycle of high taxes and slow economic growth.”
After being named prime minister on September 6, the conference that was previously anticipated to be her moment of political triumph has evolved into a fight for her political survival as a result of the market turbulence her plan for unfunded tax cuts of 45 billion pounds ($51 billion) caused.
Markets have largely stabilised after the Bank of England intervened with a package worth billions of pounds to support the bond market, though borrowing costs remain higher than before the tax plans were set out on Sept. 23.
As per a government source, Truss’s finance minister, Kwasi Kwarteng, was considering bringing forward his medium-term fiscal programme, showing how the so-called “growth plan” of tax cuts and spending would be funded to try to calm the markets.