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Liz Truss defends controversial tax cuts as pound falls


London
CNN

Liz Truss defended her government’s controversial announcement about Tax cuts for people and businesses in an exclusive interview with CNN’s Jake Tapper.

Truss told Tapper that by cutting taxes, her government is “encouraging businesses to invest, and we’re helping ordinary people with their taxes as well.”

While the cuts are expected, critics warn they will benefit the wealthy rather than much of British society. Shortly after Truss’ finance minister, Kwasi Kwarteng, announced the cuts on Friday, British pound sinks nearly 2.6% to the lowest level against the US dollar since 1985.

The UK Treasury said the cuts, which include reducing income tax from 45 per cent to 40 per cent from 45 per cent, reducing home tax and canceling plans to raise business taxes, would wipe out £45 billion ($50). ). billion) in addition to government revenue over the next five years.

Overwhelmed with responsibility for his economic plan, Truss told Tapper: “I don’t really accept the premise – the premise of the question at all. The UK has one of the lowest debt levels in the G7, but we have one of the highest taxes. Right now, we have the highest tax rate in 70 years.”

Despite the impact on public revenue, Truss confirmed in the interview that her government will still help people with their energy bills this winter.

“We have also put in place a package of measures to support consumers with energy prices, to ensure that no one has to pay more than £2,500 for their bills.”

The pledge to help Britons pay their energy bills comes ahead of what is predicted to be a brutal winter. Inflation rose above 10% in July for the first time in 40 years, driven by rising food and energy costs. Household energy bills are up 54% this year and could be even higher.

Truss was also criticized for making this commitment while refusing to tax energy companies for the profits made from them. Instead, the government will rely on borrowing to cover costs, which the opposition has described as putting costs on the nation’s credit cards.

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