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Liz Truss: Corporation Tax U-turn Confirmed

Updated: Apr 5

Discussion with clients regarding the corporation Tax

After firing her Chancellor, Liz Truss put forth intentions to rebuild her government and reversed large aspects of the failed mini-budget.

After her credibility to lead the country was constantly called into question, the Prime Minister said she was "determined" to stay in her position.

During a news conference on Friday, Ms. Truss acknowledged that corporation tax will rise next year, despite her leadership campaign's pledge to preserve it at current levels.

She left the press conference after only four questions from journalists, all of which focused on whether she could remain as Tory leader and whether she should apologize for the damage her economic policies had caused the Tory party's reputation.

Kwasi Kwarteng was driven out as Chancellor and replaced by Jeremy Hunt, who cut short his trip to Washington for the International Monetary Fund (IMF) meeting to fly back to London on Friday morning.

Ms. Truss expressed her "heartfelt regret" at losing Mr. Kwarteng from the cabinet and paid respect to her "wonderful friend."

She went on to say that Mr. Hunt "shares my vision" and praised his previous experience as a cabinet minister.

In announcing intentions to raise company taxes, she stated: "We must act quickly to reassure markets of our fiscal discipline.

"As a result, I have chosen to maintain the previous government's proposed rise in corporation tax." This will generate £18 billion each year."

Mr. Hunt, she said, would deliver the Medium-Term Fiscal Plan as anticipated at the end of this month.

This is the second major U-turn on initiatives stated in the mini-budget, following the pound's drop versus the dollar as markets remained concerned about Britain's economic policies.

The government altered plans to eliminate the 45p income tax rate for the top incomes at the start of the month.

When asked if she still had the credibility to lead after the backtracking, Ms. Truss answered, "What I've done today is provide economic stability."

She went on to say that it has been a "really terrible time globally."

Ms. Truss also stated that she was "determined" to continue as Prime Minister.

"I'm extremely determined to keep my pledge," she stated. "To deliver a stronger, more prosperous the United Kingdom to help us weather the storm.

"We've already delivered on the energy price guarantee, ensuring that households don't face unexpected expenses this winter.

"It was right, in the face of challenges, that I responded decisively to ensure economic stability - which is critical to people and businesses across the country."


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