The Prime Minister has U-turned on tax and said on Friday she will do “whatever it takes” to fix the economy and admitted “this is difficult.”
Liz Truss has mad a major policy U-turn on corporation tax and it will rise to 25% from 19%, she added, “It is clear that parts of our mini-budget went further and faster than markets were expecting, so the way we are delivering our mission now has to change.”
Following her announcement to U-turn on corporation tax the pound fell further after he eight minute statement. The pound has moved 1.2% lower at 1.119 against the US dollar.
Speaking of the former Chancellor Kwasi Kwarteng she said, “I was incredibly sorry to lose him.
“He is a great friend and he shares my vision to set this country on the path to growth. Today, I have asked Jeremy Hunt to become the new chancellor. He’s one of the most experienced and widely respected government ministers and parliamentarians, and he shares my convictions and ambitions for our country.
“He will deliver the medium-term fiscal plan at the end of this month. He will see through the support we are providing to help families and businesses, including our energy price guarantee.
“That’s protecting people from higher energy bills this winter. And he will drive our mission to go for growth, including taking forward the supply-side reforms that our country needs. We owe it to the next generation to improve our economic performance, to deliver higher wages, new jobs and better public services, and to ease the burden of debt.
“I have acted decisively today because my priority is ensuring our country’s economic stability as prime minister.”
She went on to say that, “Jeremy Hunt as chancellor is somebody who shares my desire for a high growth, low tax economy.
“But we recognise because of current market issues, we have to deliver the mission in a different way.
“And that’s where we are absolutely committed to achieving that stability.”
Asked if she will apologise after former Tory chancellor, Philip Hammond, said that she had trashed the party’s winning reputation for economic competence, she declines.
“Well, I am determined to deliver on what I set out when I campaigned to be party leader,” she says.
“We need to have a high growth economy, but we have to recognise that we are facing very difficult issues as a country.”