UK economic crisis: Liz Truss concedes she should have 'laid ground better' for tax cuts

Ever since the value of Britain's currency pound came down to a record low against the dollar, the newly formed government of Liz Truss has been under massive criticism. And for the first time, Truss has admitted that communication has been an issue between the UK PM and her chancellor, adding that she has learned a lesson from it.

"I accept we should have laid the ground better. I have learned a lesson from that," said the British Prime Minister.

'We have a plan to deal with the energy crisis,' says Truss

With this, it has now become difficult for Truss to stabilize the country's economy. She, however, has insisted that her plan would return Britain to economic growth. "We have a clear plan moving forward, both to deal with the energy crisis and to deal with inflation, but also to get the economy growing and to put us on a good long-term footing," she said.

The UK PM assured that her "approach will be to get people through this very difficult winter," reported BBC. When asked whether she would be cutting funding to public services, Truss responded, "I can't exactly set out what is going to be in this plan, but what I can promise is we're going to reduce debt in proportion to the GDP. The key thing is to get the economy growing faster, so the pie is bigger and we can afford more money for public services."

"I believe we need to grow the size of the pie; we've had two decades of relatively low growth." She said she believes in getting "value for money for the taxpayer." "We're not living in a perfect world; we're living in a very difficult world... and I believe it was the right choice to increase borrowing," Truss added.

UK economic crisis

For the first time in Britain's history, the value of England's currency, the pound, had fallen to a record low against the dollar. Notably, this plunge in the value of the pound has affected bond prices and borrowing costs and has taken pension funds close to the brink of insolvency during the pandemic, CNN reported. The Bank of England has also announced that the UK's inflation is most likely heading to 11%.

Earlier, the Labour Party leaders also criticised the government's plan. Party leder Keir Starmer in a tweet stated, "The government has lost control of the economy. It’s going to mean higher mortgages and higher prices. And what for? Unfunded tax cuts for the one per cent. "They must recall parliament today and abandon this act of economic self-harm." Despite negative reaction from financial markets and the opposition, UK PM Liz Truss continues to defend her economic plan and calls it a "decisive action," BBC reported. She said that the UK is facing "difficult economic times" and added that the problems were globally caused by the Russian offensive in Ukraine.

Image: AP