Biden denounces British PM's abandoned tax cut plan as a 'mistake'

US President Joe Biden has denounced British Prime Minister Liz Truss's original economic plan, which has led to a steep dive in the value of the pound.

Biden said on Saturday he was not the only one who thought the under-fire British Conservative leader’s abandoned tax cut reform was a "mistake."

"I wasn't the only one that thought it was a mistake," Biden told reporters during a campaign trip to the Pacific Northwest State of Oregon.

"I think that the idea of cutting taxes on the super-wealthy at a time when... I disagreed with the policy, but that's up to Great Britain to make that judgment, not me."

Tax cuts were the centerpiece of a radical economic reform program outlined by Truss and her Chancellor of the Exchequer, Kwasi Kwarteng.

 In an attempt to appease financial markets that have been in turmoil for three weeks, Truss on Friday fired Kwarteng as her chancellor of the exchequer and scrapped parts of their controversial economic package which was financed through billions in extra borrowing, which caused panic on financial markets at the prospect of higher prices that have already left British households in the grip of a cost-of-living crisis.

Britain's new Finance Minister Jeremy Hunt said Truss and Kwarteng had made a mistake on September 23 in trying to cut taxes for the highest earners, and tried to "fly blind" in presenting their plan without independent forecasts from the Office for Budget Responsibility.   

Truss will meet Hunt on Sunday and discuss the issue.

"There were mistakes," Hunt acknowledged.

"We will have some very difficult decisions ahead," Hunt said, warning that "all government departments" face spending curbs including welfare, health and defense.

"And some taxes will not be cut as quickly as people want. Some taxes will go up."

The White House has not commented on British problems. However, when Biden was asked about the strength of the US Dollar, he said, "I'm not concerned about the strength of the dollar. I'm concerned about the rest of the world."

ME