Liz Truss backs mini-budget despite cabinet not being consulted on top tax rate by Chancellor Kwasi Kwarteng
The Prime Minister reveals party was not consulted by Kwasi Kwarteng over the abolishment of the 45% tax rate.
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Liz Truss has admitted the party should have ‘laid the ground better’ prior to the mini-budget, and scrapping 45% tax was a “decision the Chancellor made”.
Appearing on BBC’s Sunday with Laura Keunssberg show, the Prime Minister appears to shift the blame onto the chancellor - who reportedly attended a cocktail party with hedge fund managers on ‘budget day’.
The interview was conducted ahead of the opening of the Conservative party conference in Birmingham.
Truss attempted to steady the ship, doubling down on her trickle-down agenda and telling doubters that the electorate voted for change in 2019 and she is "going to do things differently".
Here are the main talking point from Liz Truss’ interview with Laura Keunssberg on BBC’s Sunday with Laura Keunssberg:
What did Liz Truss say on BBC’s Sunday with Laura Keunssberg?
“We should’ve laid the groundwork better”
Kwasi Kwarteng’s announcement on budget day saw the pound immediately crash and markets enter a period of turmoil.
Liz Truss admits that the way in which her party delivered and communicated the mini-budget was flawed and that this is something they will have to learn from.
Prime Minister Lizz Truss said: “I do accept we should have laid the ground better. I have learnt from that. I will make sure in future we do a better job of laying the ground.
Truss backs government borrowing
The Prime Minister insists the plan was clear and necessary so the economy can grow in the future and that the economic package prevents people paying up to £6,000 on energy bills.
Truss states that the UK has the second largest economy in the G7.
“On the subject of government borrowing, I think it is right,” Truss said.
The Cabinet was not consulted over the 45% tax cut
When asked about whether the whole cabinet was consulted over the decision to scrap the 45% top rate of tax, the Prime Minister answered no, “it was a decision the chancellor made”.
Truss was also questioned about the Chancellor’s alleged meeting with hedge fund managers on budget day and stated that he meets business all the time.
What was announced in Kwasi Kwarteng’s mini-budget 2022?
The mini-budget delivered on Friday, September 23 addressed issues in a number of sectors.
Among some of the measures announced are the abolishment of stamp duty for new businesses, the opening of government land for the creation of new homes and businesses, and financial relief for first time buyers.
The basic income tax rate will be cut from 20% to 19% in the next financial year, and those receiving Universal Credit will have to prove they are proactively searching for a job in a bid to fill the large number of vacancies in the UK.
Kwasi Kwarteng also announced a repeal of corporation tax and the abolishment of bankers caps, in an effort to “reaffirm the UK’s status as a financial service centre.”