The plan to scrap the additional rate on incomes above £150,000 (a year) had drawn sharp criticism from Conservative MPs and contributed to the negative market reaction
London, Thanasis Gavos
The Prime Minister of the United Kingdom Liz Truss defended the decision to cancel its previously announced repeal maximum income tax rate of 45% for higher incomes, saying it was “a small part” of the measures he had announced and not a major priority for the government.
At the same time, she is said to be facing the prospect of a new internal party “mutiny” from her MPs who are warning her that she must increase welfare benefits to a rate almost twice what she is believed to prefer.
The plan to scrap the additional rate on incomes above £150,000 (a year) had drawn sharp criticism from Conservative MPs and contributed to negative market reaction.
“I listened to what people had to say, both my parliamentary colleagues and the public, and we changed the policy,” Ms Truss said in an interview with the BBC, a line she repeated in interviews with the rest of Britain’s television networks on Tuesday afternoon, on the sidelines. of the Conservative Party conference in Birmingham.
Ms Truss reiterated that scrapping the rate had become a distraction from the key points of the economic package contained in the mini-budget. The rest of the tax cuts, notably reversing the rise in social security contributions and canceling the planned rise in business tax (from 19% to 25%), make up a £43bn package, while scrapping the 45% rate amounted to £2 billion.
When asked if she still supports the reduction of the top rate of income tax as a political principle, Mrs Truss answered in the affirmative, because as she said she wants to see a more competitive Britain. But as he made clear, such a move is not being considered at the moment.
The other question that the British Prime Minister received in all her interviews concerned her policy on welfare benefits.
With the government’s stated intention to cut government spending, attention is turning to the rate by which benefits will increase for the most vulnerable citizens.
The prevailing view is that Liz Truss wants to increase benefits in line with the average increase in workers’ pay, which is about 5%.
However, amid a cost-of-living crisis, many in her party are pushing to keep the policy of increasing benefits in line with inflation, by almost 10%.
In fact, in the morning the leader of the House of Commons Penny Mordant, i.e. the minister responsible for handling government work in the legislative body, stated that in her opinion “it makes sense” that the increase in allowances should be equal to the level of inflation, “so that for citizens to be able to pay their bills”.
Ms Truss reiterated in her interviews that no final decision had been made, but noted the need for “responsible” decisions on public finances. He refrained from criticizing Mrs. Mordant’s public statement.
There has also been a sensation that in the Sky News interview Ms Truss appeared twice to decline the opportunity to clearly state her support for Finance Minister Kwasi Kwarteng. The minister is also under intense internal party criticism for the economic measures of the mini-budget that caused disruption in the markets. Later, in the Talk TV interview, she “corrected” her omission by saying: “Yes, I trust the Chancellor of the Exchequer, absolutely.”
Asked if she was worried about the polls now giving the opposition Labor a historically large lead, Liz Truss replied: “What I care about is doing the right thing for the British people.”
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I am currently a news writer for News Bulletin247 where I mostly cover sports news. I have always been interested in writing and it is something I am very passionate about. In my spare time, I enjoy reading and spending time with my family and friends.
