Truss says government will not slash spending despite tax cut plan

Oct. 12 (UPI) -- British Prime Minister Liz Truss said on Wednesday that her government does not plan to cut public spending despite offering one of the biggest tax cuts in more than 40 years.

Truss made the comments during the prime minister's questions in Britain's House of Commons in response to Labor Leader Keir Starmer quizzing her about possible spending reductions in the face of the proposed tax cuts.

Truss and her government have faced mounting criticism domestically and overseas for promising the most significant tax cuts in Britain since the 1970s while inflation was raging in the country and around the world.

Over that time, the value of the pound against the U.S. dollar dropped to near-record levels and the International Monetary Fund went public suggesting that Britain rethink its plans for the tax cut.

Earlier this month, Truss pulled back slightly, saying the tax cut would not be offered to those making more than $168,000.

Truss said, though, she was not willing to slash public spending to make up for the loss of revenue from the tax cuts.

"What we will make sure is that over the medium term the debt is falling," Truss said, according to BBC News. "But we will do that not by cutting public spending but by making sure we spend public money well."

Truss' comments drew criticism from some allies, like the TaxPayers' Alliance, a group that had supported her tax cut plan.

"The prime minister is in danger of delivering a half-baked fiscal plan," the alliance's political director James Roberts said, according to Politico.

"Government spending has grown wildly over recent years and tax cuts are back on the table, but working taxpayers know there's no such thing as a free lunch."

The Institute of Fiscal Studies said earlier this month that the government would need to find $69 billion in either spending cuts or tax rises to stop Britain's public debt from growing.

The comments came as the value of the pound against the U.S. dollar tumbled to under $1.09 after Andrew Bailey, governor of the Bank of England, said the central bank would stick to its Friday deadline to end bond buying in response to the tax cut plan despite reports it was considering an extension.