Liz Truss said that the correct use of public resources will reduce the country’s debt; economic plan comes out at the end of October
The UK Prime Minister, Liz Truss, said this Wednesday (12.Oct.2022) that he does not intend to cut public spending. The statement was made during a weekly meeting in the British Parliament.
Since the beginning of his term, Truss has faced pressure from economists and other parliamentarians because of the current energy crisis that hits the United Kingdom, triggered especially by the war in Ukraine.
On September 21, the government announced a reduction in the value of electricity and gas bills for private companies. The following week, the pound sterling, the British currency, recorded its lowest value since 1971 against the dollar and fell by 7%.
Other European countries, such as Germany and France, are also facing energy challenges because of gas supply cuts by Gazprom, the Russian state-owned company responsible for much of Europe’s supply.
According to the prime minister this Wednesday (12.Oct), the British government will “ensure that in the medium term the debt falls. We will do this not by cutting public spending, but by ensuring that we spend public money correctly.”
Keeping public spending at the level it is was one of Truss’ campaign promises during the election race for office. the current premier took on the post in September.
In the same month, the UK government released the “The Growth Plan 2022” (The 2022 Growth Plan), a package of measures aimed at accelerating economic growth.
nicknamed “mini budget”the economic plan of the Liz Truss administration has been criticized by experts, who say that the British economy could suffer negative impacts from this new fiscal package.
In October, Prime Minister announced that it would abandon the idea of cutting the income tax for people with annual income above £150,000 (about of BRL 880 thousand, at the current quote). The measure was foreseen in the Growth Plan, but Truss stated that it “had become a distraction”.
Kwasi KwartengUK Finance Minister, announced on Monday (10.Oct) that the government’s medium-term economic plan will be published on 31 October, after an assessment by the British Office of Budgetary Responsibility.
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