British Prime Minister Liz Truss admitted on Sunday she should have “prepared the ground better” before announcing last week’s massive tax cuts that wreaked havoc on financial markets, but defended the measures.
“I still support the package that we announced and I still say that we announced it quickly because we had to act, but I recognize that we should have prepared the ground better,” Truss told BBC television.
The BBC interview coincides with the start of the Conservative Party’s annual conference, which runs from today until Wednesday in Birmingham.
The elected leader of the ‘tories’ at the beginning of September, in Congress Truss will face militants and deputies angry about the repercussion of the “mini budget” of September 23 on the financial markets, sinking the value of the pound sterling and causing The interest on the public debt skyrockets.
Investors reacted with suspicion to the package of tax cuts and energy price freezes, due to the lack of economic projections and detailed plans to control the mounting public debt.
The volatility prompted the Bank of England to identify “real risks to British financial stability” and intervene in the debt market, buying government bonds.
The situation increased the risk of a rise in interest rates that will affect housing loans, aggravating the crisis of the increase in the cost of living for the British, already worrying due to inflation of almost 10%.
“I’m afraid there is a problem with rising interest rates around the world and we have to deal with it. But I want to tell people that I understand their concerns about what happened last week,” Truss said, quoted by the Spanish agency EFF.
Truss insisted that the general situation is “very difficult” and that “governments around the world are making difficult decisions.”
“This is a global problem,” said the leader of the conservatives, who alluded to the problems caused by the war in Ukraine and the aftermath of the Covid-19 pandemic.
“What’s happening around the world is that interest rates are going up, so the Federal Reserve [dos Estados Unidos] increased them by 4%,” he said.
Truss also said her executive has “a very clear plan on how to proceed this winter on the energy plan, but also on how to deal with the economic slowdown.”