British Prime Minister Liz Truss said on Tuesday she was prepared to take “unpopular decisions” such as increasing bonuses for wealthy bankers to stimulate growth in the country’s ailing economy.
An emergency budget announcement will be made on Friday, but Truss has promised tax cuts which she says will boost growth, even if they benefit the rich more than the poor.
“We have to make tough decisions to get our economy back on track,” Truss said. “We have to look at our tax rates. Corporate taxes must be competitive with those of other countries to attract these investments”.
Truss, who has been prime minister for just two weeks – a period overshadowed by the death of Queen Elizabeth II – faces immediate pressure to deliver on promises to tackle Britain’s cost-of-living crisis and shrinking economy. long recession.
It has already announced a cap on household energy bills which means average heating costs will be no more than £2,500 ($2,872) a year – much lower than had been predicted. And he says companies will learn details of similar relief on Friday.
But Truss has ruled out an extension of the oil and gas company profits tax introduced under his predecessor Boris Johnson’s government.
Critics say his free-market, low-tax economic stance, inspired by Margaret Thatcher and Ronald Reagan, is a misguided response to the crisis.
Truss, who is in New York for the United Nations General Assembly, confirmed the budget statement will reverse a tax hike implemented this year to help fund public health services and scrap a plan to raise taxes on businesses.