UK businesses will soon have to pay more taxes. This was announced by British Prime Minister Liz Truss on Friday. This is the second time in a short time that the newly appointed prime minister has had to adjust her tax plans. The much-criticised plan cost Finance Minister Kwasi Kwarting prime minister.
Truss announced Friday that the corporate tax will be increased from 19 to 25 percent. The previous government had already decided on it, but the prime minister, who took office in September, initially dismissed this plan from the table. She believed that by keeping taxes low, companies would have more opportunities to invest and thus keep the economy at a record level. So now she’s back at it.
Last week, she also had to reluctantly back out of another procedure. Truss and Quarting wanted to lower taxes for the wealthiest Britons, from 45 to 40 percent. Then the richest Britons will spend more, which will pass on to other strata of the population. Many questioned the feasibility of this plan, after which the Prime Minister announced the tax cut Deleted.
Both measures were part of a larger tax plan to keep the economy going, which was introduced in September. The plan was widely criticized, even by members of Truss’s own party.
It also led to turmoil in the financial markets, in part because it was not clear what the plans meant for the British Treasury. The Superintendent of the Bank of England had to go several times intervention to restore stability to the markets.
The tax plan came from Kwarteng, who also took office in September. Due to heavy criticism of the plan, the minister was sacked after 38 days, on Friday.
