UK Tax Cut Plan Fully Scrapped...Truss Says "Went Too Far, Too Fast"

"Not Perfect"
Apologized but Refused to Resign

(Photo by BBC)

[Asia Economy Reporter Yujin Cho] "Went too far, too fast"

UK Prime Minister Liz Truss apologized to the public for the financial market turmoil caused by her tax cut plan. While reaffirming her intention to lead the party until the next general election and drawing a line against calls for her resignation, the risk of her downfall is increasing as her key pledge has been rendered ineffective just over a month into her administration.

On the 17th (local time), in an interview with the BBC, Prime Minister Truss said about the failure of her flagship economic policy, "I am committed to our vision, but it needs to be delivered in a different way."

She acknowledged, "My actions during the first month in office were not perfect, but I have corrected the mistakes," and added, "I am still working for the growth of the UK economy, but it will take a long time to achieve."

She further stated, "I accept responsibility for going too far, too fast, and I regret the mistakes," adding, "I was committed to economic growth through tax cuts, but now maintaining economic stability is the priority."

This interview came shortly after newly appointed Chancellor Jeremy Hunt announced a statement completely scrapping the 'Truss-style' tax cut plan.

In a video statement released that day, Chancellor Hunt announced the cancellation of the income tax rate cut and a reduction in energy bill support. He scrapped the plan to bring forward the reduction of the basic income tax rate from 20% to 19% by one year and said it would be frozen indefinitely until economic conditions improve.

He also shortened universal energy bill support from two years to six months and said that from April next year, support would focus on vulnerable groups. Plans to cut dividend tax rates, tourist tax exemptions, and freeze alcohol duties were all withdrawn as well.

The tax cut plan, which had already undergone two U-turns and was Prime Minister Truss's flagship economic policy, has been effectively scrapped. The total amount of canceled tax cut policies now reaches ?32 billion out of ?45 billion.

Prime Minister Truss emphasized that she was honest in reversing and apologizing for the tax cut plan but drew a line against calls for her resignation.

Truss said, "I believe admitting mistakes is a mark of an honest politician," and added, "I have fixed the mistakes, and it would be completely irresponsible not to act in the national interest in the way I know."

However, she rejected resignation by saying, "I will lead the Conservative Party until the next general election." She emphasized, "Now is the time to focus on the pressing issues at hand, not internal party disputes," and added, "We are going through a very difficult time right now."

Although Prime Minister Truss has officially expressed her refusal to resign, skepticism is growing about whether she can hold onto the premiership until the next general election, given that her key pledge of 'growth through tax cuts' has been completely scrapped.

British media reported that with the Truss tax cut policy being nullified, Truss has lost the justification to remain in office, and Chancellor Hunt is effectively appearing as the prime minister.

Pressure for Truss's resignation continues within the party as well. The UK's Daily Mail cited anonymous sources reporting that more than 100 Conservative MPs have already prepared no-confidence letters and plan to oust Truss later this week. The number of Conservative MPs publicly demanding her resignation increased by two that day, bringing the total to five.

This content was produced with the assistance of AI translation services.