Too Far, Too Fast: UK PM Liz Truss Apologises On Tax Cuts


London: UK Prime Minister Liz Truss apologized in context to the tax reforms that caused a major loss in the confidence of investors and her poll ratings to plunge, however, she vowed to stay on and lead Tories into the next election.

In an interview with BBC, Truss said that “I do want to accept responsibility and say sorry for the mistakes that have been made… we went too far and too fast,”.

However, Truss claimed that she is “completely committed to delivering for this country” despite questions over who was now in control of government policy.

Earlier on Monday, the government in a major step axed all of its debt-fueled tax cuts unveiled last month to avert fresh market chaos.

Finance Minister Jeremy Hunt, who was appointed on Friday after Truss sacked her close ally Kwasi Kwarteng, jettisoned the remaining major planks of her tax-cutting agenda on Monday, including scaling back her vast energy support scheme.

According to a report by the Strait Times, Hunt estimated the tax changes would raise about Pound 32 billion per year after economists estimated the government faced a Pound 60 billion black hole. He also warned of tough spending cuts.

Jeremy Hunt while addressing the parliament in presence of Truss said that “The prime minister and I agreed yesterday to reverse almost all the tax measures announced in the growth plan three weeks ago,”.

The report further added that an economic advisory committee with four members will be formed that will have members from outside the government.

Hunt scrapped plans to axe the lowest rate of income tax and curbed the government’s flagship energy price freeze – pulling the plug in April instead of late 2024.

A proposed reduction in shareholder dividend tax was also binned, along with planned tax-free shopping for tourists and a freeze on alcohol duty.

The announcement comes as Truss’ governing Conservative party tanks in the opinion polls amid the reversals and Britain’s worsening cost-of-living crisis.

(With Agency Inputs) 

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