Liz Truss vows to not slash public spending as pressure mounts over her unfunded tax-cut plans
UK PM Liz Truss
Under pressure from most quarters for her tax-cut plans that have sent the economy into a downward spiral, UK Prime Minister Liz Truss vowedshe will not cut public spending to make good on her plans on Wednesday.
Speaking for the first time in theHouse of Commons since the infamous mini-budget speech, Truss doubled down on her tax-cut plans while insisting that public spending will not be curtailed.
"Absolutely. What we will make sure is that over the medium term the debt is falling. But we will do that not by cutting public spending but by making sure we spend public money well," said Truss, adding that her policies would "protect our economy".
Opposition leader Sir Keir Starmer, however, questioned the government's 'borrowing spree' which has left the currency, bond and other markets spooked.
The Labour leader called for a complete reversal of the $45 billion plan. Incidentally, the Truss government has not yet outlined the plan regarding how it will raise the money.
ChancellorKwasi Kwarteng has given October 31 as the deadline to outline the economic plan to stimulate growth.
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Read more:UK: Finance minister Kwarteng to publish fiscal plan and economic forecasts on October 31
While Truss denies that public spending will not be cut, some media reports have suggested that she will beuprating welfare payments in line with earnings rather than inflation, which experts believe is another ploy to cut public spending.
Plans to oust Truss have been discussed amongst the MPs if she continues to persist with her 'hara-kiri' policy.Truss, under her largely unfundedfinancial tax cut plan, is looking to find avenues to save money for the exchequer.
Read more:Liz Truss preparing for another U-turn; this time on welfare payments
Under her proposed plan, the benefits will rise in line with earnings which comes to around 5.5 per cent rather than in correspondence with the inflation percentage which stood at 10 per cent in the month of September.
Research has shown that if Truss goes through with her plan, as many as 450,000 could be pushed into poverty.
(With inputs from agencies)
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