Biden says Truss tax cuts were ‘a mistake’ and U-turn was ‘predictable’
US President Joe Biden has criticised Liz Truss’ tax plans as “a mistake” and said he “wasn’t the only one” who thought so.
The President said the Prime Minister’s embarrassing U-turns were “predictable” when he was asked about it during a visit to an ice cream shop in Portland, Oregon.
Biden said earlier this year that he was “sick and tired” of “trickle-down economics” and has rallied against tax cuts for the wealthiest earners in the US.
His comments will leave some in Number 10 furious as it is convention for world leaders to not comment on the domestic policy of other nations, particularly of close allies.
When Biden was asked about Truss’ tax cut U-turns by a reporter, he said: “Well, it’s predictable. I mean, I wasn’t the only one that thought it was a mistake.
“I think that the idea of cutting taxes on the super wealthy at a time when…anyway, I just think…I disagreed with the policy.
“But that’s up to Great Britain to make that judgment, not me.”
Truss has been forced to scrap large parts of her and Kwasi Kwarteng’s tax-cutting mini-Budget in a bid to calm financial markets, which reacted very poorly to a proposed package of £45bn in debt-funded tax cuts.
The Prime Minister also moved on Friday to sack Kwarteng, one of her closest friends in politics, after just 39 days in the job.
Truss has scrapped plans to cut the top rate of Income Tax, will now increase Corporation Tax after cancelling the hike and new chancellor Jeremy Hunt is set to now also delay a cut to the basic rate of Income Tax.
Biden’s comments come after the UK-US relationship is already under some strain over the Northern Ireland Protocol.
The President, who often cites his Irish heritage, urged Truss to find an agreed solution with the EU over the post-Brexit treaty when they met last month.
The White House has told the UK government that there will be no transatlantic trade deal if the UK rips up the deal unilaterally as was planned by Boris Johnson.