Liz Truss has said that taking the “tough decisions” economically will bring “long term success” for Britain. Writing an op-ed for the Sunday Express, the Prime Minister said the Government has “acted decisively”. This comes after Ms Truss’ Government introduced a series of tax cuts at the mini budget earlier in September. The Government’s plans include cutting the basic rate of income tax from 20 to 19 percent and abolishing the 45 percent top rate of tax.
The planned corporation tax increase, which was set to rise from 19 percent to 25 percent, will also be axed.
Meanwhile, stamp duty will be cut for homebuyers.
In the wake of the announcement, the pound fell to a record low against the dollar. And on Monday morning, borrowing costs reached their highest levels since August 2008.
Earlier this week, the Bank of England was forced to intervene over a “material risk” to the UK economy and it announced it will start buying bonds in order to stabilise what it described as “dysfunctional markets”.
Writing in the Sunday Express, Ms Truss justified the policies saying: “In these tough times, we cannot stick with business as usual.
“When I became Prime Minister, we were set for the highest tax burden in 70 years.
“Families and businesses were bracing themselves for energy bills to spiral in the wake of Putin’s appalling war.”
She continued: “Cutting taxes, helping families and businesses to keep more of their hard-earned money and invest in their future.
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Many senior Tory MPs, including Rishi Sunak, David Davis, Sajid Javid and Mel Stride, are reportedly planning to boycott the Conservative Party Conference, taking place in Birmingham this week.
The former Chancellor reportedly plans to be in Yorkshire instead, with an ally of Mr Sunak telling the Sunday Times he plans to give UK Prime Minister Liz Truss “all the space she needs to own the moment”.
Meanwhile, the Labour party held a record lead in the polls yesterday.
The YouGov poll, based on a survey of 1,712 voters on 28 and 29 September, presented a damning picture for the Conservatives, with Labour taking a 33-point lead.
Almost three times as many voters said Sir Keir Starmer would make a better Prime Minister than Ms Truss.