Joe Biden claims Liz Truss’s economic plan was a ‘mistake’

Bill McLoughlin16 October 2022

Joe Biden has labelled Liz Truss’s original economic plan as a mistake as the Prime Minister faces another attack on her fiscal policies.

Speaking to reporters during a visit to Oregon on Saturday, Mr Biden called the outcome of Ms Truss’s policies, which caused the pound to plummet, as a “predictable”.

“I wasn’t the only one that thought it was a mistake,” Mr Biden told reporters.

"I think that the idea of cutting taxes on the super wealthy at a time when - anyway, I just think - I disagreed with the policy, but that’s up to Great Britain to make that judgment, not me."

The White House, though, has previously declined to comment on the Prime Minister’s plan, which initially looked to scrap the 45 per cent top income tax rate.

Later when asked about the strength of the dollar, Mr Biden added: “I’m not concerned about the strength of the dollar. I’m concerned about the rest of the world

“Our economy is strong as hell - the internals of it. Inflation is worldwide. It’s worse off everywhere else than it is in the United States.”

He concluded: “So the problem is the lack of economic growth and sound policy in other countries, not so much ours.”

Ms Truss fired Kwasi Kwarteng on Friday and scrapped parts of their economic package after it sparked financial market turmoil.

As well as scrapping the decision on cutting the top rate of tax, the Prime Minister said she will now go ahead with rise to the rate of corporation tax after previously saying she wouldn’t.

According to The Times, new Chancellor Jeremy Hunt is now planning to push back the cut to the basic rate of income tax to next year in another U-turn of a flagship policy of the mini-Budget.

Speaking on Saturday, Mr Hunt said: "Spending will not rise by as much as people would like and all Government departments are going to have to find more efficiencies than they were planning to.

"And some taxes will not be cut as quickly as people want. Some taxes will go up. So it’s going to be difficult."

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