London Daily

Focus on the big picture.
Saturday, Sep 12, 2026

Truss admits her tax cuts will disproportionately benefit the rich - and says she's prepared to be an unpopular PM to boost economy

Truss admits her tax cuts will disproportionately benefit the rich - and says she's prepared to be an unpopular PM to boost economy

The prime minister spoke to Sky News ahead of her chancellor announcing new tax policies on Friday. Taking a bullish stance, she insisted she would push ahead whatever the consequences.

Liz Truss has said she is prepared to be unpopular with her tax policy as she believes it will ultimately benefit the British economy.

Talking to Sky News' political editor Beth Rigby in New York, the prime minister defended any tax changes her government will make at the end of the week and said she will do what she has to do to get the economy growing again.

She also dismissed concerns around government plans to borrow more instead of taxing energy companies' profits (a windfall tax) and said she does not accept cutting taxes is unfair.

Asked if she was prepared to be unpopular with her policies, Ms Truss said: "Yes, yes I am.

"What is important to me is that we grow the British economy, because that is what will ultimately deliver higher wages, more investment in towns and cities across the country, that is what will ultimately deliver more money into people's pockets, and it will also enable us to fund the services like the National Health Service.

"And in order to get that economic growth, Britain has to be competitive."

She said putting up taxes, placing "arbitrary taxes" on energy companies or having high corporation tax would result in a lack of investment and growth which she said "will ultimately damage opportunities in this country".

Ms Truss defended reports that Chancellor Kwasi Kwarteng will scrap caps on bankers' bonuses during a mini budget announcement on Friday as she blamed the UK's "relatively low growth" on a lack of capital investment.

"We haven't had enough capital investment and yet we have one of the world's best financial services centres," she said.

"So what I want to see is that money in the City of London put to good use across our country - and yes, I'm prepared to do what it takes to get that money flowing."

Liz Truss spoke to Beth Rigby at the Empire State Building before meeting world leaders at the UN General Assembly


As she further laid the path for the bankers' bonus announcement and tax-cutting, the PM admitted her tax cuts would disproportionately benefit the rich.

"I don't accept this argument that cutting taxes is somehow unfair," she said.

"I mean, what we know is that people on higher incomes generally pay more tax.

"So when you reduce taxes, there is often a disproportionate benefit because those people are paying more taxes in the first place.

"We should be setting our tax policy on the basis of what is going to make our country most successful, what is going to deliver that economy that benefits everyone in this country."

While the prime minister remained bullish about her tax policies, she did admit it will be a "tough winter".

But she added: "I'm determined my government takes every step and strains every sinew to get the economy going, to make sure we have a successful economy and as a country we can weather this storm.

"We will get through it."

Earlier in the day, the PM promised the UK would not bring in energy rationing this winter as some countries, such as Germany, have done.

She said the UK - and the West - "cannot jeopardise our security for the sake of cheap energy" as she pushed for other countries to commit to continue supporting Ukraine after announcing the UK will match the more than £2.3bn military aid it provided this year.

Newsletter

Related Articles

0:00
0:00
Close
Chinese Crypto Entrepreneur Leon Li Identified as Seller of £190 Million London Mansion
Trades Union Congress Proposes Social Energy Tariff Funded by Higher Bank Surcharge
British Chambers of Commerce Calls for State Pension Triple Lock to Be Scrapped
Anthropic Says Claude Helped Disrupt Biological Weapons and Cyber Espionage Threats
UK Imposes Sanctions Over Israeli Settlements and West Bank Violence
UK Reimposes Sectoral Sanctions on Iran’s Aviation, Shipping and Energy Networks
UK Economy Grows 0.4% in July as AI and Programming Services Lift Activity
UK House of Commons Rejects Assisted Dying Bill by 286 Votes to 270
UK Reviews Nationwide Emergency Alert Tests After Systems Meet Reliability Targets
UK Seeks Faster Rail Links Across Northern Industrial Corridors
British Business Bank Allocates £150 Million for High-Growth Companies in Northern England
BBC Warns Staff Strikes Are Possible Amid Pay Dispute and £500 Million Savings Drive
UK Backs Short Extension of UN Sudan Sanctions Regime
Prime Minister Andy Burnham Defends Early Prison Release Reforms and Growth Strategy
Reform UK Faces Scrutiny Over Alleged Effort to Circumvent Foreign Donation Rules
UK Analysts Warn Tax Rises or Spending Cuts May Be Needed to Preserve Fiscal Headroom
Jaguar Land Rover Plans Up to 4,000 Job Cuts in £1.7 Billion Cost-Saving Drive
UK Chancellor Warns of Difficult October Budget as Borrowing Costs Rise
UK Declares Israeli Occupation of West Bank Unlawful and Expands Sanctions
UK House of Commons Rejects Assisted Dying Bill for England and Wales
English Councils to Gain Power to Introduce Tourist Taxes by 2028
Kemi Badenoch Reshuffles Conservative Shadow Cabinet
Firefighters Make Progress Containing Major Wildfires in South Wales
John Lewis Partnership Reports £124 Million Loss
Study Says UK AI Data Centres Will Create Only a Quarter of Forecast Jobs
UK Government Considers Higher Industrial Water Prices Amid Supply Pressures
Andy Burnham Holds First Call With Donald Trump as UK Prime Minister
NHS Records Busiest Summer on Record as Heatwaves Drive Hospital Admissions
Home Secretary Orders Police Crackdown on Far-Right Anti-Migrant Vigilantes
UK Supreme Court Rules Northern Ireland Religious Education Curriculum Breaches Human Rights Standards
Markets Price in Four Bank of England Rate Rises by Next Summer
House of Commons Prepares Free Vote on Assisted Dying Bill
UK Government Bans Trade With Israeli Settlements in Occupied Territories
UK Economy Grows 0.4% in July as Artificial Intelligence Investment Supports Expansion
Andy Burnham Becomes UK Prime Minister After Keir Starmer Resigns
John Lewis Partnership Loss Widens to £124 Million
UK Government to Put White Working-Class Social Mobility at Centre of Equality Policy
McLaren Plans £450 Million Technology Investment Creating 1,000 UK Jobs
UK Chancellor Faces Calls for Wealth Taxes and Public Ownership in Autumn Budget
English Mayors to Gain Powers to Impose Uncapped Overnight Tourist Taxes
JPMorgan’s Jamie Dimon Warns UK Government Against Bank Windfall Taxes
UK Air Traffic Control Outage Cancels More Than 2,000 Flights
UK Imposes Trade Ban on Israeli Settlements in the West Bank
UK Borrowing Costs Surge as Middle East Tensions Push Long-Term Gilt Yields to Highest Since 1998
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
×