Liz Truss Prepared To Take Difficult Decision By Removing Cap On Bankers Bonses

Liz Truss Prepared To Take Difficult Decision By Removing Cap On Bankers Bonses

By Emily Caulkett-

Prime Minister Liz Truss says she was prepared to take “difficult decisions” such as removing a cap on bankers’ bonuses to boost the economy.

Her government is considering removing a cap on bankers’ bonuses as part of a post-Brexit shake-up of City rules.

Miss Truss has made known her support for energy efficiency measures but says she will not be encouraging people to use less energy this winter like other countries – such as Germany – have done.

Ms Truss outlined her plans to deal with soaring energy bills immediately after coming into power.  Her plans included an energy price guarantee to limit how much suppliers can charge for each unit of energy.

Speaking on her way to New York for a United Nations General Assembly (Unga) on Tuesday, Ms Truss said: “We are not talking about [the] rationing of energy.”

Responding to criticism about her plans ti increase tax, she siad: “I don’t accept this argument that cutting taxes is somehow unfair,” she told Sky.

“What we know is people on higher incomes generally pay more tax so when you reduce taxes there is often a disproportionate benefit because those people are paying more taxes in the first place.

“We should be setting our tax policy on the basis of what is going to help our country become successful. What is going to deliver that economy that benefits everybody in our country. What I don’t accept is the idea that tax cuts for business don’t help people in general.”

The new prime minister also confirmed a plan to scrap the cap on bankers’ bonuses as she defended measures to swell “the size of the pie” and hit out at those with “vested interests” who will oppose her policies aimed at boosting economic growth.

As she was speaking, U.S President Joe Biden tweeted criticism of the type of economic policy she was advocating – a day ahead of their meeting at the United Nations summit in New York City.

Responding to a question from BBC Political Editor Chris Mason asked Ms Truss whether she was happy to see bankers getting bigger bonuses and for the rich to get richer.

“What I want to see is a growing economy,” Ms Truss said.

“If that means taking difficult decisions which are going to help Britain become more competitive, help Britain become more attractive, help more investment flow into our country, yes, I’m absolutely prepared to make those decisions.”

Ending energy dependence on President Vladimir Putin’s country will rank high on Ms Truss’s speech to the UN General Assembly on Wednesday, as well as garnering more support for Ukraine.

Ms Truss has been accused by Mps as lacking empathy and not been very bright, an unflattering criticism that has already got critics closely examining her administration.

Upon her rise to power, Russian officials said they believed she would start world -war III due to statements she makes which they consider to be provocative.

Typical household energy bills are set to rise to £2,500 a year from 1 October, in part due to reductions in Russian gas exports during the war in Ukraine.

Given this challenge and others, Ms Truss said she would not compare herself to former prime ministers, because times were different to those of her predecessors.

“We face an increasingly aggressive Russia, an assertive China, we need to work more closely with our allies, and we need to get the British economy growing,” Ms Truss said.

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