British Prime Minister Liz Truss is planning to raise taxes on British companies after all. Truss had previously said he would not raise those taxes as part of a broad package of tax measures to stimulate the economy. However, these plans came under heavy criticism, and financial markets were unstable due to concerns about damage to British public finances.
In a speech, Truss said parts of these budget plans “goed farther and faster than markets had expected.” “We must act now to reassure the markets about our fiscal discipline. That is why I have decided to stick with the corporate tax increase planned by the previous government.” As a result, this tax will rise from 19 to 25 percent next year.
Earlier today, Truss had already fired Finance Minister Kwasi Koarting. He co-authored controversial tax plans. Karting will succeed Jeremy Hunt, who previously served as Minister of Foreign Affairs and Health.
Truss has also previously diverted course by scrapping a planned tax cut for high-income earners. On Friday, it promised to continue with its other tax plans to boost growth. She said she was “absolutely determined” to deliver on her promise of stronger growth and greater prosperity for the UK. Truss said that was her mission and the reason she was elected leader of the Conservative Party.
Truss went on to say she took “decisive” action on Friday because her priority is economic stability in the UK. “As Prime Minister, I always act in the national interest. This is always my first appreciation.” I admit it was a difficult period. But we will weather this storm.”
The Prime Minister also indicated that he had great confidence in Hunt as the new Finance Minister. “He is one of the most experienced and respected ministers and shares my beliefs and aspirations for our country,” Truss said.
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