Commenting today on Prime Minister Liz Truss’s trickle-down economic plan, President Joe Biden called it a “mistake” and a “predicable” one.
“Well, it’s predictable. I mean, I wasn’t the only one that thought it was a mistake,” said Biden of politically wounded Truss.
“I think that the idea of cutting taxes on the super wealthy at a time when — anyway, I just think — I disagreed with the policy, but that’s up to Great Britain to make that judgment, not me.”
Jeremy Hunt, the new Chancellor with no Treasury experience, will be making significant changes to Liz Truss’s economic plan. He said that rising taxes would be back on the table.
Hunt said on his first day in the job that the government made mistakes and warned of what he called “very difficult decisions” ahead.
“We have some very difficult decisions ahead, difficult decisions on spending, which is not going to rise as much as people hope and I am going to be asking all government departments to find additional efficiency savings,” said Hunt in a round of broadcast interviews this morning.
The Bank of England governor warned that “inflationary pressures” could lead to another hike in interest rates in the near future.
“We will not hesitate to raise interest rates to meet the inflation target. And as things stand today, my best guess is that inflationary pressures will require a stronger response than we perhaps thought in August,” said Andrew Bailey.
The fourth Chancellor, Jeremy Hunt, has just two weeks to write a budget to eliminate many segments of the Liz Truss’s economic plan she campaigned on. The first verdict will come when financial markets open next week.
Spending cuts and tax rises was not in PM’s plan when she entered No.10. Truss pledged to cut taxes, to not cut public spending and to increase defense spending. During the Leadership Contest she said the country can’t tax its way to economic growth. However, the economic and political turmoil that followed her mini-budget has plunged her premiership into chaos. The Prime Minister’s press conference yesterday did little to convince conservative MPs in her leadership. Even Joe Biden now has an opinion to share.