Truss promises tax cuts, not ‘donations’ to tackle cost-of-living crisis

Conservative leadership Liz Truss (PA/Finbarr Webster) (PA Wire)

Conservative leadership Liz Truss (PA/Finbarr Webster) (PA Wire)

Liz Truss said she would help people with the cost-of-living crisis by reducing taxes, not giving “handouts.”

The Conservative leadership hope was asked if she would offer more help with spiraling fuel bills this winter if she becomes the next prime minister.

The foreign minister told the Financial Times that she would of course “look at what more can be done” but said she would do things in a “conservative way”.

Ms Truss rejected the idea of ​​giving “alms”, promising to implement tax cuts instead.

She told the publication: “Of course, I’ll see what else can be done. But the way I would do things is in a conservative way of reducing the tax burden, not handing out alms.”

His comments come against a backdrop that is getting more blatant by the day.

This week, energy consultancy Auxilione said the government’s price cap, which sets bills for more than 20 million homes in Britain, could reach nearly £4,000 a year from January.

A new analysis by the Office for National Statistics (ONS) also shows that nearly half (44%) of UK adults who pay energy bills found it very or a little difficult to pay them in the last two weeks of July.

We can create the British version of Silicon Valley. We can create real opportunities

Liz Truss

The Bank of England warned on Thursday that Britain faced two years of falling household incomes, with inflation rising to more than 13% and the economy plunging into its longest recession since the financial crisis.

At a Conservative leadership meeting in Eastbourne, Sussex, on Friday night, Truss suggested that his plans for immediate tax cuts could prevent a recession.

So far, the foreign secretary has promised to lift “green taxes” on energy bills, roll back the national insurance increase and cancel the planned increase in the corporation tax.

She told Conservative members: “I know there are tough predictions out there, but predictions are not fate. And what we shouldn’t do is convince ourselves to go into recession. We must keep taxes low.

“We can create the British version of Silicon Valley. We can create real opportunities.”

However, his rival Rishi Sunak argued that unless inflation is brought under control, “there is no hope” that the Conservatives will win the next election.

Liz Truss during Eastbourne hustings (Gareth Fuller/PA) (PA Wire)

Liz Truss during Eastbourne hustings (Gareth Fuller/PA) (PA Wire)

Dealing a veiled blow to his opponent, Sunak said he is “particularly concerned about policies that risk worsening inflation and lasting longer”.

The former chancellor said: “Well, the first thing we need to do to make sure we can win this election is to have gotten over this inflation problem by then.

“And that’s why I’m particularly concerned about policies that run the risk of getting worse and lasting longer.

“Because this is a problem that is not just for this winter. It’s a problem for the coming winter too, and beyond.

I don’t want to stick with the failed policies of the past. That’s what some people are suggesting. Did not work.

Rishi Sunak

“Because, as the Bank of England said, they’re worried about inflation creeping in – so there’s no hope that we’re going to win the next election. Absolutely none. It’s that simple.”

He also insisted that the corporate tax is not the “right tax” to focus on, instead he spoke of the need to reform corporate taxes to “cut them on the things that make a difference”.

Mr. Sunak said: “I don’t want to stick with the failed policies of the past. That’s what some people are suggesting. Did not work.”

He added: “Investment in this economy today, no better than it was a decade ago, even though we do all these things in corporation tax.

“Because it’s not the right tax to focus on. And that’s where my experience in business, my time as chancellor, my conversations with business, led me to the conclusion that we need to be much more radical.

“We need to reform corporate taxes to lower them on the things that make a difference.”

On Friday night, the foreign secretary received support from two former conservative ministers, Nus Ghani and Dame Andrea Leadsom.

Ghani told Conservative members in Eastbourne that, because of her role as vice chairman of the 1922 Committee of Conservative MPs, she was unable to support a candidate until this stage of the race.

Dame Andrea, who served as Penny Mordaunt’s campaign manager and business secretary, wrote in the Telegraph that Truss would ensure that “every baby gets the best start in life.”

Rishi Sunak during the husting event (Gareth Fuller/PA) (PA Wire)

Rishi Sunak during the husting event (Gareth Fuller/PA) (PA Wire)

By attending the Commonwealth Games in Birmingham later, the Secretary of Foreign Affairs is expected to lay out a series of economic reforms that her campaign team claims will “promote regional growth by overhauling funding to supercharge the right kind of investment.”

Some of the reforms include revising the capping formula to correct underinvestment in regional infrastructure and creating low-tax, low-regulation “investment zones” or “full free ports” in abandoned sites.

However, a spokesperson for Sunak’s campaign accused Truss’s team of “copying and pasting” policies that the former chancellor had already implemented.

The spokesperson said: “Not only are Team Truss’ copy and paste policies implemented by Rishi himself, but they are also re-announcing two-year government policies.

“Imitation is the best form of flattery, as the saying goes.”

Sunak’s team argued that the “investment zones” are simply a copy and paste of the freeports he pioneered as chancellor and that Truss’ plan to revise the capping formula comes nearly two years after he reformed it.

Leave a Reply

Your email address will not be published.