London. UK Prime Minister Liz Truss has defended her policy of tax cuts, despite sparking a public debt and sterling crisis, and forcing the Bank of England to intervene.
Conservative Truss emerged from several days of silence with numerous radio and television interviews to defend the plan that caused a storm this week, as the pound plunged to an all-time low.
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“It’s the right plan we’ve put in place,” Truss told BBC radio. “There will always be people who will oppose a certain measure. It is not necessarily easy. But we have to do it.”
Coming under pressure from bidders about why her government has been cutting taxes mainly on the richest people in the mini-budget despite inflationary pressures, causing the pound to fall and the cost of public debt to rise, Truss dismissed any idea what was wrong.
The British pound fell to a record low of $1.0350 on Monday and recovered slightly. The pound fell again against the dollar yesterday.
The Bank of England had to intervene by buying government debt to “restore normalcy” in the context of a very sharp rise in interest rates on British bonds.
The International Monetary Fund (IMF) issued a warning and explicitly asked London to reconsider some of the measures.
Shadow adviser Rachel Reeves claimed the local radio interviews “made this disastrous situation worse” and urged Truss to call on Parliament to repeal what she called the “kamikaze budget”.
Criticism intensified among his co-religionists, and British newspapers reported that some MPs demanded the head of the Economy Minister to continue supporting Truss.
According to the central bank, Britain, which has the highest inflation rate in the Group of Seven, at about 10 percent, is in recession.
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