Since the government announced its 'mini budget' on Friday, September 23, Liz Truss and her Chancellor Kwasi Kwarteng have faced quite the backlash. The Prime Minister attended a series of local radio interviews last week, her first public interviews since the mini budget announcement, where she defended the 'controversial and difficult decisions' the government had made.
She was also 'called out' by a BBC Bristol radio presenter for, he said, giving 'scripted answers' and a former Cabinet minister has since said that, unless she drops her plan to hand tax cuts to the rich, she will be "ousted from her job before Christmas". The Prime Minister has also faced criticism from her own party over how she has handled the economy at her first Tory conference as leader.
But, here in Bristol, Tory Councillor Mark Weston has said he thinks the PM's tax cutting agenda has been "broadly correct", though he feels that reducing the 45% top rate was a "premature" move which has now been acknowledged by Mr Kwarteng. He also believes that the new government deserves "enormous credit" for the Energy Price Guarantee, though added that he feels Liz Truss needs to "urgently address an obvious communications problem in her Downing Street team".
Read more: MPs want to dock Liz Truss and Kwasi Kwarteng's pay over 'gross mismanagement' of economy
Mr Weston, who is Councillor for Henbury & Brentry and Leader of the Conservative Group on Bristol City Council, said: “I think the Prime Minister’s Conservative tax cutting instincts and agenda are broadly correct. It is a demonstrable law of economics (Laffer curve) that lower tax rates, paradoxically, actually increase the government’s tax take – because the better off do not try to avoid paying less onerous taxes.
"There is a similar rationale in her plan to lower corporation tax rates to attract greater inward business investment into the UK. That said, reducing the 45% top rate now was premature and this has been acknowledged by the Chancellor today (Monday, October 3)."
He went on to say: "It is worth remembering that for 13 years under New Labour, 40p in the pound was considered a fair and reasonable rate for high earners – only for Gordon Brown to raise this to 50p just weeks before the 2010 general election. Locally, we welcome the announced tax policy reversal as this will help to calm and stabilize the markets and thereby protect Bristol’s own economy.
"The new Government also deserves enormous credit for the Energy Price Guarantee which appears to have been forgotten or ignored by our political opponents. This sets a cap on the unit price of gas and electricity for households, together with a £400 one-off payment to assist people in paying these bills.
"Equivalent support is to be provided for businesses and public sector organisations over the Winter. Such assistance is extremely important for the most vulnerable – those who depend on fixed incomes or benefits – in our society.
"The Prime Minister needs to urgently address an obvious communications problem in her Downing Street team. Policy initiatives must be adequately and convincingly explained if we are to avoid future reversals.
"Again, this shortcoming has been recognised by Liz Truss and I am confident it will be rectified. I don't believe that she should, nor will, step down so soon into her tenure."
According to the official gov.uk webpage detailing the Energy Price Guarantee, from October 1, the guarantee will mean a typical UK household will now pay up to an average £2,500 a year on their energy bill for the next two years - something which is 'automatic' and applies to all households. The official information also states that this will save the average household at least £1,000 a year based on current energy prices from October and is in addition to the £400 energy bills discount for all households.
Read next:
- What Government plans for Universal Credit, DWP benefits and pensions may mean
- Chancellor Kwasi Kwarteng shrugs off ‘little turbulence’ after U-turn over tax cut for the rich
- Tories seek to shift focus from economy after U-turn humiliation
- DWP says Brits at state pension age could more than £3,000 in backdated claim
- Extra DWP payment for carers worth more than £3,000 a year many don't realise they're entitled
