Liz Truss signals further tax cuts could be on way in hunt for economic growth
Liz Truss has signalled that further tax cuts could be on the way as she strives to boost economic growth in the face of the biggest economic storm the UK has faced in a generation.
In the mini-budget on Friday, the government is planning to cut national insurance and ditch a planned corporation tax rise as it attempts to reduce a record tax burden.
Kwasi Kwarteng, the new chancellor, is expected to announce the creation of a network of low-tax, low-regulation investment zones, and there could be changes to business rates.
However, Truss’s remarks before this week’s emergency “fiscal event” suggest she could be prepared to go further still in the months ahead, with a full budget expected in November.
She told reporters that the “number one thing” she wanted to deliver was economic growth, adding: “Lower taxes lead to economic growth, there is no doubt in my mind about that.”
She said: “Having the highest taxes in 70 years and putting up corporation tax at a time when we’re trying to attract investment to this country isn’t going to deliver growth. We need to be competitive.”
Truss appeared to defend controversial plans, expected to be confirmed on Friday, to scrap a cap on bankers’ bonuses, admitting: “Not every measure will be popular.”
She said: “There are always vested interests, people who oppose measures that increase economic growth, but what is important to me, what is important to the chancellor, is that people have more opportunities, there is more investment, there are jobs with higher wages. We are prepared to make that argument. This is about growing the size of the pie.”
The prime minister conceded there were “other measures” the government had to take to spur economic growth, such as investing in projects like
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