‘We have done the right thing’: Prime Minister Liz Truss defends mini-budget amid market turmoil | Politics News

Liz Truss says her government has “done the right thing” in its small budget to get the economy going.

Speaking to the BBC in a local radio interview this morning, the British Prime Minister said “urgent action is needed”, along with “difficult and controversial decisions” to improve the situation. picture in the UK.

She said she was “prepared to do it… because it’s important to me that we get our economy going, we make sure everyone can get through the winter.” this, and we’re prepared to do what it takes to make that happen.”

Latest UK economic news: The minister insists the government will not change course

Markets fell into turmoil after the government announced a small budget on Friday that included a series of tax cuts – such as the removal of income tax for the top earners, reversing National Insurance increases and cancellation of corporate tax increases.

Economists fear the amount of borrowing needed to pay for the policies and the result that the pound plummets.

The Bank of England was forced to intervene to prevent some pension funds from collapsing by launching a temporary bond-buying program. as an emergency measure to avert “material risks” to the UK’s financial stability.

However, speaking in public for the first time since the explosion, Ms. Truss still said the government “did the right thing by acting urgently”, despite the ensuing troubles, and she remained convinced. into “reasonable currency”.

She said the Treasury was “working closely” with the Bank of England, reiterating the bank’s independence, but claimed there were “tough markets around the world” due to the war in Ukraine. and the problem in England is not homegrown.

But while the Prime Minister went on to say that the “biggest part” of the government interventions was on energy bills – introducing an average bill limit of £2,500 and equivalent help for businesses – this was announced over a week ago on a small budget and is not believed to be the main reason for the market reaction.

Click to subscribe to Sky News Daily wherever you get your podcasts

Prior to that, Treasury Secretary Chris Philp admitting that ditching the highest tax rate would only benefit the richest people in the country.

But questioning whether that policy and others are fair to the public, the Prime Minister said: “The fact is that the widespread adoption of lower tax rates … will help everyone. people because it helps grow the economy, and the debate in this country has been going on for too long, distribution, not how we develop the economy.

“It’s not fair to have a recession, it’s not fair to have a town where you don’t get investment, it’s not fair if we don’t get high paying jobs in the future because we have to bear the burden of taxes. highest. in 70 years. That’s not fair.”

‘Sort this mess out’

The government is facing demands from opposition parties to summon parliament out of the assembly to deal with economic issues.

At the end of his party’s conference on Wednesday, Labor leader Sir Keir Starmer urged Mr Kwarteng to cancel Friday’s announcements “before any further damage occurs”, telling Sky News that Ms. Truss is a “danger” to the economy.

And this morning, Liberal Democratic Party leader Sir Ed Davey told Sky News: “Liz Truss, Kwasi Kwarteng and the rest of this group of amateurs need to go back to their offices, stop their conference and deal with this mess – go to parliament and be held accountable.”

The Conservative Party conference opens on Saturday in Birmingham, but could be a tense affair, with some Tory MPs criticizing the government’s policies.

Some of the party’s big names, including former leadership candidate and former Prime Minister Rishi Sunak and predecessor Health Minister Sajid Javid, are also expected not to attend.