UK Tax Cuts the Right Medicine for Productivity: Economist

British Prime Minister Liz Truss leaves Westminster Hall after the Presentation of Addresses by both Houses of Parliament in Westminster Hall at the Houses of Parliament, London, on Sept. 12, 2022. Markus Schreiber - WPA Pool/Getty Images

As UK Prime Minister Liz Truss’ tax cuts come under fire from financial institutions and media outlets, one Australian economist says it is a step in the right direction, but more needs to be done to curb spending.

The Truss government is backing tax cuts and reductions to stamp duty (a form of property tax) to spur economic activity. However, in response to the move, financial institutions like the Bank of England and the International Monetary Fund have urged Truss and Kwasi Kwarteng, the chancellor of the exchequer, to reverse or delay the move.