UK Prime Minister Liz Truss on Monday (October 17) apologised in no uncertain terms for her economic reforms that triggered turmoil in UK. However, she vowed to remain prime minister in spite of humiliating climbdowns which have seen her struggling for political survival.
“I do want to accept responsibility and say sorry for the mistakes that have been made… we went too far and too fast,” she told the BBC.
However, she said that she was “completely committed to delivering for this country” despite questions over who was now in control of government policy.
Her government on Monday axed almost all of its debt-fuelled tax cuts unveiled last month to avert fresh market chaos.
The shock move by new finance minister Jeremy Hunt who succeeded sacked Kwasi Kwarteng, has left Truss in precarious position politically and voices from Truss’ own Conservative Party said that Hunt was a “de facto prime minister”
Hunt estimated the tax changes would raise about £32 billion ($36 billion) per year, after economists estimated the government faced a £60-billion black hole. He also warned of tough spending cuts.
“The prime minister and I agreed yesterday to reverse almost all the tax measures announced in the growth plan three weeks ago,” Hunt told parliament, flanked by a grim-faced Truss.
He also announced the formation of an economic advisory council, featuring four experts outside of government.
Truss told the BBC that she still believed in a “high-growth, low-tax economy”, but that economic stability was “my priority as prime minister”.
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.
After April, his department will “review” its energy support package, he said.
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’s governing Conservative party tanks in the opinion polls.
(With inputs from agencies)
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