On Thursday, British Prime Minister Liz Truss defended her economic strategy, which has caused volatility in the financial markets, by declaring that she was prepared to take “controversial” moves to revive economy and that she would not change course in spite of the chaos.
During a series of interviews that she gave to several local BBC radio stations, she said that “This is the appropriate approach that we’ve put forth.”
When Truss was asked whether she would overturn the mini budget that stunned markets with the magnitude of its tax cuts and government borrowing, she responded by saying that she did not accept the premise of the inquiry.
I do not dispute the fact that we are now living in very challenging economic circumstances. This affects people all across the world. But what is quite appropriate is that the government of the United Kingdom has intervened and taken action at this trying period,” Truss said on Thursday.
“The vast bulk of the package that we released on Friday was help on energy for people and companies, and I believe that doing so was exactly the correct thing to do.”
Truss said that the government needed to take prompt and decisive action in order to safeguard companies and people from skyrocketing energy costs.
“Of course, this requires us to make judgments that are both contentious and challenging. She said, “But I’m willing to do that as prime minister because what’s essential to me is that we get our economy going.” She is prepared to do that because what’s important to her is that we get our economy moving.
A crisis of confidence in Truss’ economic plans has hit her government hard less than a month after she took office, causing it to suffer significant setbacks.
They have brought about a precipitous decline in the value of the pound as well as an increase in the cost of borrowing money, all of which are driving the United Kingdom closer to recession and posing a danger to the property market.
After her government’s mini-budget caused chaos in the financial markets, Truss said on Thursday that she believed in sound money and that currencies throughout the globe were coming under pressure.
In an interview with BBC local radio, she said, “I do believe in sound money.”
As a result of the issue, the leaders of the opposition have asked that Truss summon an emergency session of parliament and cancel the conference that would be held by her party starting on Sunday.
The United States Department of Commerce Secretary Gina Raimondo said on Wednesday that Truss’s determination to slash taxes wouldn’t boost growth, the International Monetary Fund urged Truss to reconsider her plans, and Lawrence Summers, a former United States Treasury Secretary who is now a paid contributor to Bloomberg Television, said that Britain has the worst economic policy of any major country.
Earlier, Chris Philp, Britain’s chief secretary to the Treasury, said that he did not agree with the concerns that were highlighted by the International Monetary Fund over the government’s budget for lowering taxes.
He predicted that the actions will result in sustained economic expansion in the long run.
“I was aware of the IMF’s remarks. I have to politely disagree with you, “he shared with Sky News.
Last week, Kwasi Kwarteng, Ghana’s Minister of Finance, unveiled a proposal to slash taxes without providing any specifics of how this would affect the public finances or how the government would transform the economy to stimulate growth. As a result, the financial markets were thrown into disarray.
The value of the pound declined, which led to an increase in the yield on British government bonds.
As a result, the Bank of England had no choice but to reactivate its bond-buying program on Wednesday as an emergency measure to strengthen up pension funds.
Philp said that the government will keep to its intention to conduct a comprehensive fiscal statement on November 23, when it would spell out greater specifics on how it will slash debt. He stressed that this date would not change.
When asked whether the administration had any regrets about the way it had handled the economy, Philp said that interest rates had been climbing throughout the globe as a direct result of Russia’s invasion of Ukraine.