Liz Truss has stated that she is willing to be unpopular with her tax policy because she believes it would benefit the British economy in the long run.
The prime minister told that she took a bold stand and insisted she would proceed regardless of the repercussions.
The prime minister defended any tax changes her administration will implement by the end of the week and stated that she will do whatever it takes to stimulate economic growth.
She also disregarded concerns regarding government intentions to borrow additional money instead of taxing the profits of energy corporations (a windfall tax) and stated that she does not believe tax cuts are unfair.
When asked if she was prepared for her policies to be unpopular, Ms. Truss responded, “Yes, I am.
“What is most essential to me is that we develop the British economy, because that is what will ultimately result in greater salaries, more investment in towns and cities around the country, more money in people’s pockets, and the ability to support things like the National Health Service.
And for Britain to achieve economic development, it must be competitive.
She stated that increasing taxes, imposing “arbitrary levies” on energy businesses, or levying a high corporate tax would result in a lack of investment and growth, which would “ultimately harm chances in this country.”
Ms. Truss defended claims that Chancellor Kwasi Kwarteng may eliminate curbs on bankers’ bonuses during a short budget speech on Friday, blaming a lack of capital investment for the UK’s “very modest growth.”
“We have not received enough capital investment, despite having one of the top financial services centers in the world,” she remarked.
“Therefore, I want to see that money in the City of London put to good use across our nation, and I’m willing to do whatever it takes to make that happen.”
As she paved the way for the disclosure of bankers’ bonuses and tax cuts, the prime minister acknowledged that her tax cuts would disproportionately benefit the wealthy.
She stated, “I do not believe the premise that tax cuts are somehow unfair.”
“I mean, we know that people with greater salaries pay more tax on average.
“Therefore, when you decrease taxes, there is typically a disproportionate gain for individuals who paid higher taxes, to begin with.
“We should determine our tax policy based on what will make our country the most prosperous and what will produce an economy that benefits everyone in this country.”
While the prime minister remained confident in her tax measures, she did concede that winter would be “difficult.”
She continued, “However, I am determined that my government takes every step and stretches every muscle to get the economy running so that we have a prosperous economy and can weather this storm as a nation.
We will make it through.
Earlier in the day, the prime minister pledged that the United Kingdom would not implement energy rationing this winter, as countries such as Germany had.
She stated that the United Kingdom and the West “cannot jeopardize our security for the sake of cheap energy” after announcing that the United Kingdom will equal the more than £2.3 billion in military aid handed to Ukraine this year.