Her official spokesman later said “difficult decisions” on spending would need to be made in the coming months. The Prime Minister said she is “absolutely” not planning public spending reductions, but qualified her comments slightly by saying that taxpayers’ money must be used well.
Ms Truss on Wednesday insisted she would not cut public spending to balance the books, raising questions over how she will calm the markets.
The Treasury will announce a “medium term fiscal plan” on Oct 31, mapping out how to get debt falling within five years, but it remains unclear how that will be achieved. On Wednesday, Number 10 and Number 11 moved to deny reports that changes to tax cuts announced in the mini-Budget were being considered. Ms Truss had promised to scrap the rise in corporation tax from 19 per cent to 25 per cent, due in April, but is now facing calls to reverse course.īringing in the tax cut over a longer period would be likely to save the Treasury billions of pounds but prompt accusations of hypocrisy after Ms Truss campaigned against a rise in the Tory leadership race this summer. Liz Truss is under growing Tory pressure to raise corporation tax to reassure the markets over her debt reduction plan as she ruled out major spending cuts.Ĭonservative MPs on Wednesday predicted that the Prime Minister would be forced into changing more elements of her mini-Budget despite denials from Downing Street.
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