Liz Truss urges world leaders to join Britain in introducing far-reaching tax cuts despite US president Joe Biden Taking a dig at “trickle down economics” ahead of their first bilateral talks in New York.
in a speech United Nations On Wednesday, the prime minister will argue that the free world should prioritize economic growth in order to give authoritarian states like Russia a chance to manipulate the global economy.
However, his embrace of Reignite’s economic policy put him on a collision course with the Democratic president, who tweeted yesterday that he was “sick and tired” of the approach he claimed had never worked. did not do.
In its latest break from Treasury conservatism, the truce on Tuesday vowed to review all tax rates to help struggling families and businesses through the cost of living crisis. The prime minister’s remarks paved the way for a radical overhaul of the system, which could include a re-look at the income tax bracket and amid reports he plans to cut stamp duty as part of his emergency mini-budget on Friday. has been
In an interview on Tuesday at the top of the Empire State Building, she told the BBC: “We have to make tough decisions to get our economy right. We have to look at our tax rates. Hence the need to make the corporation tax competitive with other countries.” needed so that we can attract that investment.
It had already indicated that further tax cuts could be on the cards with changes due on Friday. He told reporters on the plane in the US: “There is no doubt in my mind that low taxes lead to economic growth.”
The Times reported that Truss believes cutting stamp duty – which raises around £12bn a year for the Treasury – will aid growth by encouraging more people to move.
Truss’s first talks with Biden are set against a backdrop of tensions over post-Brexit trading arrangements in Northern Ireland. Despite efforts to isolate Britain’s issues, the Biden administration has warned that a free trade deal is unlikely until the dispute over the Northern Ireland Protocol is resolved.
In the prospect of disappointing Brexiters, the truce lowered expectations that any trade agreement was imminent, saying: “There are currently no talks with the US and I have no hope that they will begin briefly.” Going to be for the medium term.”
US National Security Adviser Jake Sullivan said Biden would use the meeting to “encourage the UK and EU to work out a workable outcome that ensures there is no threat to the fundamental principles of the Good Friday Agreement”.
The two leaders also differ on their approach to achieving growth, with the truss endorsing ‘trickle down’ economics during the Tory leadership competition, arguing that all economic policy should be implemented through a “lens of redistribution”. It was wrong to see
Meanwhile, Biden tweeted: “I am sick and tired of trickle-down economics. It’s never worked. We are building an economy from bottom to top and middle to outside.”
Yet Truss is expected to debate his economic case in his keynote speech at the United Nations, telling fellow world leaders: “We want people to have more money than they make, because we believe that freedom Trump trumps education. We are revamping our economy to get Britain moving once again.
“The free world needs this economic strength and resilience to hold back against authoritarian aggression and win this new era of strategic competition. We will no longer be strategically dependent on those who seek to weaponize the global economy. “
In a broadcast round on Tuesday, Truss acknowledged that his tax-cutting plans would initially benefit the wealthy more than the rest of society, but doubled down on reversing recent growth in national insurance to top earners. There would be a profit of around £1,800 per year, and the lowest earner around £7.
“I don’t accept the argument that cutting taxes is unfair in any way,” she told Sky News. “What we do know is that people with higher incomes generally pay more taxes, so when you reduce taxes there is often a disproportionate benefit because those people are paying more tax in the first place. .
“We should set our tax policy on the basis of what will help our country to succeed. What is it going to give to the economy that benefits everyone in our country. What I do not accept is that Tax deductions for business generally don’t help people.
truss, which is also proposing to Eliminate bankers’ bonuses, said she was prepared to be an unpopular prime minister for bringing in measures she believed would boost the economy. “Yes, yes I am,” she said. “What is important to me is that we develop the British economy”.
Some Tory lawmakers believe Chancellor Quasi Quarteng could bring forward a year ahead of his predecessor Rishi Sunak’s pledge to cut income tax by 1% from 2024. Business groups are expecting a change in business rates and a cut in VAT. The energy crisis, as well as the long-term review.
The truce dismissed concerns about the falling pound and the general state of the economy. “I believe the UK’s economic fundamentals are strong,” he said, dismissing claims that interest rates would rise as a result of his approach.
Earlier, she said the high energy bill was a price to pay to guarantee Britain’s security from foreign invaders, but that the cost should not be passed on to households.