has said her Government will ‘usher in a decade of dynamism’ as she defended its controversial raft of tax cuts amid criticism it disproportionately benefits the rich.
In an op-ed for The Mail on Sunday, trailed in The Mail +, the Prime Minister wrote: ‘Growth means families have more money in their pockets, more people can work in highly paid jobs and more businesses can invest in their future.
‘It provides more money to fund our public services, like schools, the and the police.
‘We will be unapologetic in this pursuit…everything we do will be tested against whether it helps our economy to grow or holds it back.’
She added: ‘We will usher in a decade of dynamism by focusing relentlessly on economic growth.’
It comes after new Chancellor Kwasi Kwarteng denied ‘gambling’ with the economy as he revealed £45billion in tax cuts and an estimated £400billion in borrowing over the next five years.
Liz Truss has said her Government will ‘usher in a decade of dynamism’ as she defended its controversial raft of tax cuts amid criticism it disproportionately benefits the rich
A Treasury minister said the Government is not concerned about the ‘politics of envy’ as its raft of tax cuts came under fire for disproportionately benefiting the rich.
Labour accused the Prime Minister and the Chancellor of gambling with people’s finances in ‘casino economics’ and said their ‘trickle-down’ approach will leave the next generation worse off.
Using more than £70billion of increased borrowing, Mr Kwarteng on Friday unveiled the biggest programme of tax cuts for 소울카지노 50 years, including abolishing the top rate of income tax for the highest earners.
The Resolution Foundation said Mr Kwarteng’s package will do nothing to stop more than two million people falling below the poverty line.
Analysis of the mini-budget by the think tank said ‘only the very richest households in Britain’ will see their incomes grow as a result of the tax cuts.
The wealthiest 5 per cent will see their incomes grow by 2 per cent next year (2023/24), while the other 95 per cent of the population will get poorer as the cost-of-living crisis continues.
Labour accused the Prime Minister and the Chancellor of gambling with people’s finances in ‘casino economics’ and said their ‘trickle-down’ approach will leave the next generation worse off
The Institute of Fiscal Studies (IFS) said only those with incomes of over £155,000 will be net beneficiaries of tax policies announced by the Conservatives over the current Parliament, with the ‘vast majority of income tax payers paying more tax’.
IFS director Paul Johnson told BBC Breakfast on Saturday: ‘If you’ve got less than about £150,000 a year coming in, if you’re part of the 99 per cent with less than £150,000 coming in, then you’re still going to be worse off as a result of tax changes coming in over the next two or three years.’
But Ms Truss defended the tax cuts, saying her Government is ‘incentivising businesses to invest and we’re also helping ordinary people with their taxes’.
In an interview with CNN, to be aired on Friday but trailed by the US broadcaster in advance, she was asked about the responsibility of her economic plan.
‘I don’t really accept the …premise of the question at all,’ she said.
‘The UK has one of the lowest levels of debt in the G7, but we have one of the highest levels of taxes. Currently, we have a 70-year high in our tax rates.’
Labour leader Sir Keir Starmer, who will seek to capitalise on the unpopularity of the Government’s new measures at his party’s annual conference, tweeted: ‘Tory casino economics is gambling the mortgages and finances of every family in the country’
Chief Secretary to the Treasury Chris Philp insisted slashing taxes for high and low earners will drive growth.
He told Times Radio: ‘We’re going to do what’s right.We’re going to get growth delivered. And we’re not going to sort of worry about the politics of envy, or the optics of it.’
Labour leader Sir Keir Starmer, who will seek to capitalise on the unpopularity of the Government’s new measures at his party’s annual conference, tweeted: ‘Tory casino economics is gambling the mortgages and finances of every family in the country.’
His deputy Angela Rayner told BBC Breakfast: ‘We’ve seen trickle-down economics before.It doesn’t work. We don’t believe it’ll stimulate the economy. And, you know, I think it will make the next generation worse off.’
Mr Philp said Mr Kwarteng’s tax-slashing programme is ‘not a gamble, it’s a necessity’.
His comments echoed Mr Kwarteng’s, who told reporters on Friday: ‘It’s not a gamble.
‘What is a gamble is thinking that you can keep raising taxes and getting prosperity, which was clearly not working.’
Angela Rayner told BBC Breakfast this morning that the new 19p income tax rate was ‘the wrong priority’, suggesting Labour would reverse the reduction if it wins the next election
Rayner said Labour’s own tax proposals will ‘guarantee cost of living improvements’ for those on the lowest wages — and branded the government’s Growth Plan ‘casino economics’