Joe Biden criticises Liz Truss, describes tax cuts as a ‘mistake’

The US president has publicly criticised the UK prime minister’s beleaguered budget, weeks before a meeting of G20 leaders in Indonesia.

Joe Biden speaks about lowering costs for American families at the East Portland Community Center, in Portland, Oregon, on October 15, 2022. Picture: AFP

Joe Biden has taken the extraordinary step of publicly criticising UK prime minister Liz Truss’s beleaguered budget, describing her tax cut plans as a “mistake”, weeks before a meeting of G20 leaders in Indonesia set to be the most diplomatically awkward ever.

Mr Biden said the market turmoil and political blowback the UK government endured since revealing its plans to cut the top rate of income tax and freeze company tax at 19 per cent last month was “predictable”, and her policies a “mistake”.

“I mean, I wasn’t the only one that thought it was a mistake,” he told reporters on a campaign trip to Portland, Oregon, when asked about the UK’s plight on a campaign trip to Oregon on Saturday (Sunday AEDT).

“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,” he added.

US Presidents typically avoid commenting on the domestic policies of other nations, especially the UK which has long been one of Washington’s closest allies.

Liz Truss answers questions at a press conference in 10 Downing Street after sacking her former Chancellor, Kwasi Kwarteng. Picture: Getty Images

Mr Biden’s comments came a day before National Security Adviser Jake Sullivan on Sunday appeared to rule out the president’s meeting with Saudi Arabia Crown Prince Mohammed bin Salman at the G20 summit scheduled for mid-November in Bali, Indonesia.

“He has no plans to meet with the crown prince at the G-20 summit,” Mr Sullivan told CNN on Sunday, adding to the logistical nightmare facing Indonesian organisers in trying to keep feuding delegations apart or at least cordial.

Russian president Vladimir Putin is expected to attend the summit, along with Ukraine’s president Volodymyr Zelensky, who has stated he has no plans to meet or negotiate with the Russian leader.

China’s president Xi Jinping, likely fresh from his winning an unprecedented third term as leader at the Chinese Communist Party Congress this month, will attend amid frosty relations between Beijing and Moscow over China’s tacit support for Russia’s invasion of Ukraine.

Indonesia, the world’s largest Muslim country, has refused to join in US-led sanctions on Russia, adding to the diplomatic minefield.

Prime Minister Anthony Albanese will attend the summit, where he will meet most of the G20 leaders for the first time.

The White House flagged a review of its relations with Saudi Arabia last week, after the oil rich kingdom earlier this month orchestrated a two million barrel a day cut in OPEC oil production, widely seen as a sign Riyadh was siding with Moscow over Ukraine and attempting to undermine Democrats’ chances in November midterm elections.

The oil supply reduction has put upward pressure on US petrol prices, which historically have a strong negative relationship with approval rating of the party in control of the White House.

Mr Biden, whose administration has recently passed laws to increase taxes on companies, also in Oregon appeared to blame other nations for the precarious state of the global economy.

“I’m not concerned about the strength of the dollar. I’m concerned about the rest of the world. Does that make sense?,” he said.

“Our economy is strong as hell — the internals of it. Inflation is worldwide. It’s worse off everywhere else than in the United States,” he added, a day after figures showed US inflation had accelerated in September and remained at 40 years high.

Kwasi Kwarteng. Picture: Getty Images

Treasurer Jim Chalmers met UK Chancellor Kwasi Kwarteng in Washington for IMF meetings a day before the latter was sacked by Ms Truss on his return to the UK, making him the second shortest tenured Chancellor in UK history after Ian MacLeod.

Mrs Truss herself is expected to face no confidence motions under UK Conservative party rules in coming weeks, potentially ruling out her attendance at the first G20 leaders’ summit since Russia, a G20 member, invaded Ukraine in February.

The G20 summit will also take place after the final round of the Brazilian presidential election on 30th November, which could see conservative president Jai Bolsonaro, who insulted French President Macron’s wife, re-elected.

The president of Mexico, who snubbed President Biden’s invitation to attend the Organisation of American States’ meeting in California in June, is expected to attend.

Mr Biden had a poor relationship with former British PM Boris Johnson, calling him a” physical and emotional clone of Donald Trump” after Mr Johnson’s 2019 election win.