Liz is committed to a lean state and, as the immediate shock subsides, we will work to reduce the debt-to-GDP ratio over time.” “But I want to provide reassurance that this will be done in a fiscally responsible way. The UK’s ratio of debt to gross domestic product is lower than any other G7 country except Germany, so we do not need excessive fiscal tightening. He added: “That is absolutely the right thing to do in these exceptionally difficult times. Promising policies to increase growth, Kwarteng said the scale of the crisis meant “there will need to be some fiscal loosening to help people through the winter”. He added: “We know households are worried, and decisive action is needed to get families and businesses through this winter and the next. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. For more information see our Privacy Policy. Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. That is what Liz Truss will be if elected as leader of the Conservative party and prime minister of the UK.” He said: “Families and businesses are feeling the impact across the United Kingdom and the world. Writing in the FT, Kwarteng said the UK economy was suffering the impact of the invasion of Ukraine and of Covid. “The ‘but’ is that simply cutting taxes, cutting national insurance contributions, for example, is not a strategy for growth.” “She’s clearly absolutely right that we’ve had dreadful growth over the last 15 years,” he told BBC Radio 4’s Today programme. Paul Johnson, the head of the Institute for Fiscal Studies thinktank, said Truss’s plans could bring “not just extremely high borrowing in the short run, but also additional inflationary pressure”. “The worst outcome is, as it were, to give low taxes a bad name,” Davis said. The former minister David Davis, who comes from the same low-tax wing of the Conservative party, said on Sunday that Truss should “think quite hard about” her plans. Some observers, including senior Tory MPs, have warned that Truss’s economic plan risks fuelling inflation, and could push up interest rates. Kwarteng, who closely shares Truss’s beliefs about the need for a lower-tax, low-regulation economy, conceded in the article that helping people as well as her promises of immediate tax reductions would lead to government borrowing increasing for a time, but promised a “fiscally responsible” approach. Writing an article in Monday’s Financial Times, Kwasi Kwarteng, the business secretary, who is understood to be Truss’s choice for chancellor if she wins, said a new government would need to take “decisive action” on the economy and bills. Overnight, the Times and Daily Telegraph reported that her team has been in talks about potentially doing this, although such help could be more targeted than Labour’s universal proposal. But she failed to rule out a government-imposed freeze on bills, as proposed by Labour.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |