Liz Truss shouldn't have backtracked on a botched mini-budget, says Jacob Rees-Mogg

Former Cabinet Minister Jacob Rees-Mogg said that once the decision was made to drastically cut taxes for the wealthy, "it was important to move forward to the next step: the spending cuts that were to come'

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Liz Truss gives her last speech outside Downing Street

Deposed Prime Minister Liz Truss should have cut public spending rather than rolling back tax cuts for the wealthy, says Jacob Rees-Mogg.

The Tory millionaire claimed the attempt by Ms Truss and then-Chancellor Kwasi Kwarteng to scrap the top tax rate of 45p on top earners was the 'smallest part' of the chaotic october mini budget.

A series of hasty tax cuts on corporations and the wealthy – alongside a huge energy program – spooked markets, triggering spikes in interest rates and mortgage rates that are expected to cost taxpayers billions.< /p>
But right-winger Mr Rees-Mogg told the ConservativeHome podcast that once the decision to cut taxes for the wealthy was made, "it was important to move forward with the next step: the spending cuts that would go arrive".< /p>
He added: "I thought there was no need to cut the cut - to reverse the 45p decision. It made no difference to the markets or the budget deficit.

“It was an insignificant rounding error in the government accounts. All it did was show that the government had no firm objective.”

Liz Truss will only be remembered for the "brevity" of her tenure, says Jacob Rees Mogg (
Picture:
POOL/AFP via Getty Images)
And he said the humiliated ex-prime minister should have continued with "supply-side reforms", also reducing regulations on business.

"I think if instead of saying the 45p decision was overturned we had said there was a saving of £6 billion that would have been much better market assurance," he said. -he declared.

The millionaire MP added: "Some of these [cuts] were really easy to put in place - continuing with the reduction of 91,000 civil servants. Getting the mantra 'let's spend the money efficiently'.

Politics Nov 29, 2022 0 51 Add to Reading List

Liz Truss shouldn't have backtracked on a botched mini-budget, says Jacob Rees-Mogg

Former Cabinet Minister Jacob Rees-Mogg said that once the decision was made to drastically cut taxes for the wealthy, "it was important to move forward to the next step: the spending cuts that were to come'

Video loading

Video not available

Click to playTap to play

Liz Truss gives her last speech outside Downing Street

Deposed Prime Minister Liz Truss should have cut public spending rather than rolling back tax cuts for the wealthy, says Jacob Rees-Mogg.

The Tory millionaire claimed the attempt by Ms Truss and then-Chancellor Kwasi Kwarteng to scrap the top tax rate of 45p on top earners was the 'smallest part' of the chaotic october mini budget.

A series of hasty tax cuts on corporations and the wealthy – alongside a huge energy program – spooked markets, triggering spikes in interest rates and mortgage rates that are expected to cost taxpayers billions.< /p>

But right-winger Mr Rees-Mogg told the ConservativeHome podcast that once the decision to cut taxes for the wealthy was made, "it was important to move forward with the next step: the spending cuts that would go arrive".< /p>

He added: "I thought there was no need to cut the cut - to reverse the 45p decision. It made no difference to the markets or the budget deficit.

“It was an insignificant rounding error in the government accounts. All it did was show that the government had no firm objective.”

Liz Truss will only be remembered for the "brevity" of her tenure, says Jacob Rees Mogg (

Picture:

POOL/AFP via Getty Images)

And he said the humiliated ex-prime minister should have continued with "supply-side reforms", also reducing regulations on business.

"I think if instead of saying the 45p decision was overturned we had said there was a saving of £6 billion that would have been much better market assurance," he said. -he declared.

The millionaire MP added: "Some of these [cuts] were really easy to put in place - continuing with the reduction of 91,000 civil servants. Getting the mantra 'let's spend the money efficiently'.