Economy: Treasury minister Griffith defends tax cuts as the "right" approach, Parliament not to be recalled

Published by Scott Challinor on September 29th 2022, 12:01am

Financial secretary to the Treasury, Andrew Griffith, has defended the government’s tax-cutting measures outlined in the mini-Budget, after they were subjected to fierce criticism this week.

The tax cuts have been greeted by an extraordinary market reaction, with the cost of borrowing surging and the pound sterling falling in value.

Labour leader Sir Keir Starmer has called on ministers to renege on the mini-Budget and recall Parliament, a plea which Downing Street has rejected.

Sir Keir's party has also been pressuring government throughout the week to publish in detail how the Treasury intends to finance the measures and reduce public debt in the longer-term.

Elsewhere, the International Monetary Fund has called on the government to reconsider implementing large-scale tax cuts at a time of inflationary pressure, warning that it could widen the inequality gap and exacerbate cost-of-living woes.

However, Griffith (pictured) has rebuffed the calls and insisted that the government’s approach is the “right” way to instigate growth.

He is the first minister to comment publicly on the market reaction to the mini-Budget. Peer and former minister of state at the Cabinet Office, Lord Frost, had publicly referred to the market turmoil as an “overreaction” prior to Griffith’s statement.

Griffith said that “every major economy is dealing with exactly the same issues” that the UK is facing, and the government was right to cut tax to address the “underlying problems in the economy.”

Highlighting that the UK had one of the best debt to GDP ratios in the world’s major economies, Griffith said: “We think they (the tax cuts) are 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 praised the Bank of England’s decision to step in and control the soaring cost of borrowing by purchasing government bonds, saying that they had “done their job” in doing so.


Photo by Richard Townshend on Wikimedia Commons 

Share this article


Leaders of Great Britain

About Leaders of Great Britain

Leaders of Great Britain hosts a series of engaging events featuring prominent figures from the worlds of politics, sports, business, and entertainment. Our goal is for every attendee to leave these gatherings with profound leadership insights that transcend boundaries. Learn More.


Related Features


Authored By

Scott Challinor
Business Editor
September 29th 2022, 12:01am

Follow Us

Follow @LeadersGBNI on Twitter for more live updates

Share this article


Popular Features

FEATURES | Published October 7th 2024, 4:04 pm

Margaret Ollivier: Ensuring Respect and Inclusivity at Expect Ltd

FEATURES | Published September 16th 2024, 11:11 am

Andrew Martin: Steering the Course of Planning and Development

FEATURES | Published July 26th 2024, 7:07 am

Paul Bowley: Transforming Lives with Abbeycare Group

© Copyright 2024, Leaders of Great Britain.