London, Sept 23:
Britain’s new Government today announced a sweeping plan of tax cuts it said would be funded by borrowing and revenues generated by anticipated growth, as part of contentious moves to combat the cost-of-living crisis and bolster a faltering economy.
But Treasury chief Kwasi Kwarteng offered few details on the cost of the program and its impact on the Government’s own targets for reducing deficits and borrowing.
The Government’s two-pronged approach offers short-term help for homes and businesses struggling with soaring energy costs while betting that lower taxes and reduced red tape will spur economic growth and increase tax revenues in coming years.
“We need a new approach for a new era, focused on growth,” Kwarteng told lawmakers in the House of Commons.
Friday’s statement was billed as a “fiscal event” rather than a budget, because it wasn’t accompanied by an analysis of its cost from the independent Office for Budget Responsibility. Opponents said the government was dodging scrutiny.
The plan was immediately attacked by the opposition Labour Party for favouring the interests of business over working people and failing to provide any analysis about the impact on the government’s fiscal targets.(PTI)