Truss’ new finance minister admits mistakes and wants to take countermeasures
London Britain’s new Treasury Secretary Jeremy Hunt has made mistakes in the after severe market turbulence tax policy from Prime Minister Liz Truss granted and a new course announced.
“It was wrong to remove the top tax rate for the highest earners at a time when we have to ask everyone to make sacrifices to get us through a difficult time,” Hunt said on Saturday, referring to one of Truss der’s already canceled projects BBC. And it was wrong to announce tax cuts without disclosing to the public how these plans could be financed.
“We have to show the world that we have a plan that works financially.” Hunt said that Truss sees her mistakes and will put her right. Difficult decisions now lie ahead of the government. Steer could increase and government spending would probably have to be further reduced in the coming months.
“Spending will not increase as much as people would like and all government departments will have to find more efficiencies than they planned,” the finance minister said. “And some taxes won’t be cut as quickly as people would like.”
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His comments indicated that he could reverse many of the economic promises that Truss campaigned for the Conservative leadership and tried to implement in the first few weeks of her presidency.
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After just a few weeks in office, Truss has been severely criticized because their economic and tax plans had caused enormous turbulence. She had argued that this could boost growth.
Three weeks ago she promised £45 billion in tax breaks without explaining where the money would come from. Markets and the British pound plummeted. At the same time, the reduction in the tax rate for top earners, which has since been recovered, caused displeasure among the population in view of the high cost of living.
On Friday, Truss fired Finance Minister Kwasi Kmachen – many observers say to save her own political skin – and replaced him with Hunt, the former health and foreign minister.
At the same time, she made a U-turn in her tax plans. There are said to be plans within her Conservative Party to replace Truss as party leader with her two closest rivals in the summer party leadership race, Rishi Sunak and Penny Mordaunt. However, it was not clear how this could be done.
When asked on Saturday how long Truss would stay as prime minister, Hunt said the country now wants stability. Truss will be judged on what she does before the next general election in 2024. “She has been prime minister for less than five weeks and I just want to say this much: I think she will be judged in an election,” he said.
Britain’s new finance minister, Jeremy Hunt, wants to restore stability to the country’s turbulent economy. Striving for economic growth is correct, said the new Chancellor of the Exchequer late on Saturday evening. “But we went too far, too fast,” he explained, looking at the controversial economic policy by Prime Minister Liz Truss. His focus is on growth based on stability.
At the same time, between the lines, Hunt attuned his countrymen to further changes to Truss’ tax plans. “We have to be honest with people and we’re going to have to make some very tough decisions, both in terms of spending and tax, to get the debt down,” he said. The most important thing is to help people, families and businesses in difficulty.
More: Escape to the front: Truss fires Minister of Finance Kwarteng – but that’s probably not enough for her opponents