Liz Truss defends controversial tax cuts as pound falls

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London
CNN

Liz Truss has defended his government’s controversial announcement to lower taxes for citizens and businesses in an exclusive interview with CNN’s Jake Tapper.

Truss told Tapper that by cutting taxes, her government “encouraged businesses to invest, and we’re also helping ordinary people with their taxes.”

While the cuts were expected, critics warn they will be more beneficial to the wealthy than the majority of British society. Shortly after Truss Finance Minister Kwasi Kwarteng announced the cuts on Friday, the pound sank almost 2.6% to the lowest level against the US dollar since 1985.

Britain’s Treasury said the cuts, which include lowering top income tax to 40% from 45%, reductions in duty on home purchases and the cancellation of a planned rise in business tax, would wipe out 45 billion pounds ($50). billion) of the state’s income over the next five years.

Pressed on responsibility for his economic plan, Truss told Tapper: “I don’t accept the premise of – the premise of the question at all. Britain has one of the lowest debt levels in the G7, but we have one of the highest tax levels. At the moment we have a 70- annual high in our tax rates.”

Despite the public revenue cuts, Truss confirmed in the interview that her government will still help citizens with energy bills this winter.

“We have also introduced a package of measures to support consumers with energy prices, to ensure that no one has to pay more than £2,500 on their bills.”

The pledge to help Britons pay their energy bills comes ahead of what is expected to be a brutal winter. Inflation rose above 10% in July for the first time in 40 years, driven by rising energy and food costs. Household energy bills have already risen 54% this year and could be even higher.

Truss has also been criticized for making this promise while refusing to tax energy companies for their windfalls. The government will instead rely on loans to cover the costs, which the opposition has described as putting the cost on the country’s credit card.

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