Liz Truss and Kwasi Kwarteng were set to make another U-turn on Tuesday, the second in as many days, as the British prime minister refused to rule out more backtracking from their disruptive mini-budget.
Chancellor Mr Kwarteng was forced to roll back plans to scrap the top rate of tax on Monday, after an outcry from voters and MPs.
He is expected to announce another about-turn on Tuesday, bringing forward the Office for Budget Responsibility’s forecast.
The independent assessment of the impact of the government’s proposals had been scheduled for November 23, when Mr Kwarteng is to set out a medium-term fiscal plan.
Speaking on LBC radio on Tuesday, Ms Truss refused six times to rule out more U-turns.
“I’m absolutely determined to press ahead with this growth plan,” she said.
“We are pressing ahead with our energy package, with our tax reductions. And with the really important reforms to get Britain moving.”
Speaking about the top rate of tax U-turn, she said: “We have listened to people's concerns across the country and we've decided not to proceed with that.
“And I think that's right because it was a distraction from the really important stuff we are doing, such as making sure people's bills are guaranteed and making sure we are getting the economy moving.”
“We have already implemented the biggest part of the package,” Ms Truss added, referring to the cap on the energy unit price to limit bills this winter.
Speaking on the BBC Radio 4 Today programme later, in an interview recorded before the expected announcement of the U-turn on the OBR forecast, she refused to say whether she would make the report available earlier than November 23.
“We’re working very closely with the OBR,” she said.
“It’s important that we have a forecast to go with that plan, and that’s something the chancellor is working on.”
“I am very clear we have committed to having a proper OBR forecast to reduce debt as a proportion of GDP over time.
“But I do think it is important that we acknowledge the UK does have the second lowest debt in the G7 and also, that raising taxes during a slowing global economy would have been a mistake.”
She said the government will “have to make decisions” about how it brings down debt as a proportion of GDP in the medium term.
“I am very committed to supporting the most vulnerable. In fact, in addition to the energy price guarantee we're also providing an extra £1,200 to the poorest households,” she said.
“So, we have to look at these issues in the round, we have to be fiscally responsible.”
Former Cabinet ministers Michael Gove and Damian Green have spoken out on their concerns about any refusal to increase benefits in line with inflation.
Mel Stride, Tory chairman of the Treasury select committee, said he would have to “think long and hard” if asked to vote to increase benefits in line with earnings rather than inflation.
Mr Stride told the Today programme: “The last time the benefits were uprated, because of the way the mechanism works they're uprated in April but they're pegged against the previous September's inflation.
“And the way it worked last time was the uprating was just 3.1 per cent, because inflation was low the previous September. But of course inflation was much higher than that [in April].
“We're coming off the back of a kind of quite a strong real-terms squeeze on those benefits already, so, I think that will be a really tough call to make.”
Ms Truss told LBC “no decision has been made yet on benefit uprating”, adding that it “will be taken in due course”.
Pressed on why she commits to increase pensions but not benefits, she said: “What I mean is when people are on a fixed income, when they are pensioners, it is quite hard to adjust.
“I think it's a different situation for people who are in the position to be able to work.”
Asked if she will rule out increased austerity, she said she has committed to reducing debt as a proportion of national income over the medium term.
“Well, I wouldn't use the term you describe. What I'm talking about is fiscal responsibility,” she said.
Source: The National
Image source: BBC
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