Status: 05.10.2022 08:46 AM
Disagreements in the British government over the financing of tax cuts have created uncertainty among the Conservative Conservatives. Prime Minister and party leader Liz Truss is under increasing criticism.
It slowly got confusing around the corners. First, the planned reduction in the highest income tax rate was cancelled. Then Finance Minister Kwasi Quarting hinted that plans to fund a batch of tax cuts would be presented later this month, rather than in November. measure it Calm financial markets Should. But today the Minister of Finance announced the third reversal: it was misunderstood, but there was no early budget planning.
Uncertainty in the party base is increasing
This has not been well received at the popular level, and many are unstable and critical of the chaos in which the new government led by Liz Truss began. This became evident in several rounds of talks at the Conservative Party conference. For example, he invited Jake Perry, the new CEO of the party. Several members and delegates came to ask questions about party finances, party work, and the current state of the Conservatives.
Two local politicians unleashed their frustration and reported how difficult it is to talk to voters on their doorsteps right now. Everyone wanted to talk about the feud only in London, and no one about local politics. In another round of discussions, one member pointed out clearly: There are already voices that would recommend that the Conservatives in the opposition should be regrouped.
Truss emphasizes the unity of its ministers
But the new elections are not yet waiting. Liz Truss fights for political survival. Home Secretary Suella Braverman has defended the prime minister in Birmingham, explaining why she would prefer a higher tax rate cut. But parts of the party instigated a “coup”.
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She was referring to several MPs who indicated that they would not agree to the tax cut for the wealthy in Parliament. Among them was Michael Gove, the former Minister for Equality in Life, who has publicly criticized plans to cut the BBC’s highest tax rate.
On the other hand, Liz Truss once again referred to the unity of government. She told Radio Times that her ministers were behind the growth plans. The prime minister wants to support growth with a number of measures, including lowering the land transfer tax, the corporate tax and the income tax rate. It remains to be seen whether these debt-financed measures will really boost growth.
The controversy over the financing of tax cuts
However, the Prime Minister’s statements sound like a famous whistling in the woods. Because there has been a long-running dispute over the financing of the tax cuts, which remains unclear. Liz Truss will not undertake to adjust interest rates to account for inflation. And in an interview with the BBC, she said she had to act “financially responsibly” – which others have criticized.
House of Commons Speaker Penny Mordaunt, also a Conservative, said it made sense to adjust welfare benefits in line with inflation. She and other MPs would have voted for this in the past.
Disagreement over how to finance the tax cuts could become heated. The new election would be a disaster for the party for now: In last week’s poll, 54 percent of respondents said they would vote for Labour, compared to just 21 percent for the Conservatives. Against this background, the pressure on gears is enormous.
Truss is due to deliver a much-anticipated speech at the Conservative Party conference in Birmingham at noon. She is expected to comment on the package through which the government wants to combat the economic crisis in the country.