The UK prime minister said on Tuesday that she and her chancellor, Kwasi Kwarteng, were prepared to make the case for controversial policies because “it’s about increasing the size of the pie”. Kwarteng will present a tax-cutting mini-budget on Friday with a focus on policies he claims will push Britain’s growth rate back to the pre-crash level of 2.5% a year. The Truss refused to discuss the plan to end the EU cap on bankers’ bonuses – which are capped at twice their annual salary – but its allies confirmed a Financial Times report last week that an announcement was imminent. Speaking later on Tuesday, Mr Truss confirmed that Friday’s budget event would reverse the rise in national insurance and the planned rise in corporation tax announced by former chancellor Rishi Sunak. He told the BBC: “I will always work to make sure we help those who are struggling. . . that’s why we will take measures for National Insurance, reversing this increase”. “We have to look at all the tax rates. So the corporate tax has to be competitive with other countries so that we can attract that investment.” Truss admitted, however, that her plans to cut taxes would initially benefit the wealthy more than the rest of society. “I don’t buy that argument that the tax cut is somehow unfair,” he told Sky News. “What we know is that people with higher incomes generally pay more taxes, so when you cut taxes there’s often a disproportionate benefit because those people pay more taxes to begin with.” Asked if she was willing to be unpopular, Truss said: “Yes. Yes I am.” He added: “What is important to me is that we grow the British economy because that is what will ultimately bring higher wages, more investment in towns and cities across the country. This is what will ultimately put more money in people’s pockets. Labor strategists could hardly believe that the new government was considering lifting restrictions on bankers’ pay as one of its first economic acts. But they know Truss will try to brand the opposition party as “anti-growth”.

Kwarteng will also on Friday give more details on how the government’s plan to cap annual average household energy bills at £2,500 will be funded. Business secretary Jacob Rees-Mogg is expected to offer more information on a similar plan for companies on Wednesday. Truss said that while the government would protect people and businesses from rising energy prices, the West had to face tough choices because “we cannot compromise our security for the sake of cheap energy.” Speaking to reporters ahead of her first trip abroad as prime minister, Truss added: “The Western world has become too dependent on authoritarian regimes, not only for our energy reserves but also for other critical minerals and other goods.” He said breaking Britain’s dependence on authoritarian regimes was “a price worth paying because our long-term security is paramount”. Truss argued that the government’s decision to clamp down on bills would reduce headline inflation by up to 5 percentage points, adding: “Of course, economic growth will be higher than it would have been if we hadn’t acted because it would have had a debilitating effect on the economy.” Truss was forced to put politics on hold during 10 days of national mourning following the death of Queen Elizabeth. He praised civil servants, the royal family and the armed forces for overseeing the widely praised ceremonial events marking “this very important moment in our nation’s history”.