Draw up plan for cuts, government departments told

2 months ago 23

Breaking News image

A Treasury minister has rejected calls for the government to abandon last week's mini-Budget in the face of market turmoil.

Labour has called on ministers to ditch the proposals after they sparked a fall in the pound and a surge in borrowing costs.

But Financial Secretary to the Treasury Andrew Griffith said they were the "right plans" to grow the UK economy.

He claimed "every major economy is dealing with exactly the same issues".

Mr Griffith said the £45bn package of tax cuts announced last week would repair "underlying problems in the economy".

He added the Bank of England had "done their job" by announcing it would buy government debt to stabilise the economy.

Mr Griffith is the first minister to comment on the market turmoil in the last few days that has seen the pound drop to record lows against the dollar.

Chancellor Kwasi Kwarteng, who unveiled the tax-cutting package last Friday, is yet to speak publicly on the effect of the package on markets.

Speaking to broadcasters, Mr Griffith insisted the UK had a "very strong balance sheet" and one of the lowest debt to GDP ratios of major economies.

Asked whether the government had any plans to change Friday's measures, he replied: "We think they're the right plans, because those plans make our economy competitive".

"At the end of the day, that's ultimately what we've got to do," he said, saying ministers were focused on "getting on and delivering" its plans.

Read Entire Article