London Daily

Focus on the big picture.
Saturday, Dec 20, 2025

Ground should have been laid for tax cuts, admits Liz Truss

Ground should have been laid for tax cuts, admits Liz Truss

Liz Truss has admitted she should have "laid the ground better" for her mini-budget, after it sparked days of market turmoil.

The prime minister told the BBC's Laura Kuenssberg she had "learned from that", but she was confident her tax cutting package would boost economic growth.

She added a decision to cut the top earner tax rate was a "decision that the chancellor made".

And she revealed it was not discussed with the whole cabinet beforehand.

The cut to the 45p rate has provoked outrage from opposition parties, and concern from some Conservative MPs.

Former minister Michael Gove said the cut displayed the "wrong values," and signalled he wouldn't vote for it.

He also said he was "profoundly concerned" about the decision to borrow to fund the tax cuts, calling it "not Conservative".

The government's mini-budget included £45bn in cuts funded by government borrowing, and revealed the government expects its two-year scheme to fix energy prices will cost £60bn in the first six months.

The announcements sparked days of turbulence in financial markets, with the pound falling to a record low against the US dollar on Monday, although it has since recovered.

The rocky economic backdrop is set to dominate this week's Conservative party conference, Ms Truss's first as Tory leader, where she faces the task of reassuring her MPs over her approach to boosting the flagging UK economy.

Speaking from the gathering in Birmingham, Ms Truss promised to win over "the hearts and minds" of Tory MPs to persuade them of her plan.

In an interview for the BBC's Sunday With Laura Kuenssberg, she said she remained committed to her approach and she was "confident" better growth would result.

"I do stand by the package we announced and I stand by the fact we announced it quickly, because we had to act," the prime minister added.

"But I do accept we should have laid the ground better. I have learned from that, and I will make sure that in future we do a better job of laying the ground."

She also defended the decision to cut the 45p income tax rate for top earners, saying it "raises very little" and made the tax system more complicated.

She added that the cut was a decision made by Chancellor Kwasi Kwarteng - prompting former cabinet minister and Boris Johnson loyalist Nadine Dorries to accuse her of throwing him "under a bus".

And Mr Gove, who has served in several cabinet roles in previous governments, expressed concerns about scrapping the top rate at a time when "people are suffering".

Former deputy prime minister Damian Green warned a reception at conference that the Tories would lose the next general election if "we end up painting ourselves as the party of the rich".

Labour's shadow chancellor Rachel Reeves accused the government of conducting a "mad experiment" with the economy, calling the market turmoil a "crisis made in Downing Street".

Also speaking to Laura Kuenssberg, she said investors had been spooked by the "sheer scale of the borrowing" to fund the tax cuts, alongside the decision not to publish an official economic forecast alongside the plans.

She added that the public would "pay the price" for the turbulence, and said Ms Truss had failed to understand the "anxiety and fear" about the state of the economy.

In a bid to reassure markets, the government has said it will set out how it plans to lower public debt in the medium term on 23 November.

Pushed repeatedly on whether she planned to cut public spending, Ms Truss did not say, but added she wanted to get "value for money for the taxpayer".

She did not commit to raising benefits in line with inflation, saying that a decision would be made later this autumn.

She also rejected calls to bring forward an assessment of the government's plans from the UK's budget watchdog, currently due to be published alongside the debt plan.

She added that an assessment of the spending plans was "not yet ready".

"There's no point in publishing something that's not ready. That would just cause confusion," she added.


Watch: Prime Minister Liz Truss says she stands by plans announced in the mini-budget

Michael Gove: Cutting tax for the wealthiest "a display of the wrong values"

Rachel Reeves says the government is conducting a "mad experiment" with the UK economy


Newsletter

Related Articles

0:00
0:00
Close
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
×