Liz Truss tax cuts, not ‘handouts’, tackle the crisis of the livelihood

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iz Truss has said she would help people with the cost of living crisis by cutting taxes and not giving “handouts.”

The hopeful Tory leadership was asked if they would offer more help with rising fuel bills this winter if they become the next prime minister.

The secretary of state told the Financial Times 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 “handouts” and promised to make tax cuts instead.

She told the publication: “Of course I will look at what more can be done. But the way I would do things is in a conservative way to lower the tax burden, not to hand out alms.”

Her comments come against a backdrop that grows more grim by the day.

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

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

The Bank of England warned on Thursday that the UK will face two years of falling household incomes, with inflation set to rise to more than 13% and the economy facing the longest recession since the financial crisis.

At a meeting of Tory leaders in Eastbourne, Sussex, on Friday evening, Ms Truss warned Britain “must not talk itself into a recession” and claimed the Bank’s bleak forecast was not inevitable.

So far, Ms Truss has pledged to end “green taxes” on energy bills, reverse the increase in national insurance and cancel the planned corporate tax increase.

She told Tory members: “I know there are difficult predictions, but predictions are not fate. And what we shouldn’t do is talk ourselves into a recession. We have to keep taxes low.

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

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

Rishi Sunak speaks at a hustings in Eastbourne

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With a thinly veiled swipe at his opponent, Mr Sunak told the hustings that he is “particularly concerned about policies that make the risk (inflation) worse and last longer”.

He also stressed that corporate taxes are not the “right tax” to focus on, instead speaking of the need to reform corporate taxes to “lower them on the things that make a difference”.

Mr Sunak said: “I don’t want to cling to the failed policies of the past. That’s what some people suggest. It did not work.”

On Friday evening, the foreign minister was supported by two conservative former ministers, Nus Ghani and Dame Andrea Leadsom.

Ms Ghani told Tory members in Eastbourne that, because of her role as Vice-Chairman of the 1922 Committee of Conservative Conservative MPs, she would not have been able 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 Mrs Truss would ensure “every baby gets the best start in life”.

As she later attends the Commonwealth Games in Birmingham, the Secretary of State is expected to map out a series of economic reforms that her campaign team claims will “promote regional growth by overhauling funding to drive the right kind of investment.” “.

Some of the reforms include a revision of the leveling formula to solve underinvestment in regional infrastructure and to create low-tax and unregulated “investment zones” or “full-fat free ports” on brownfield sites.

However, a campaign spokesperson for Mr Sunak accused Ms Truss’ team of “copy and paste policies” that the former chancellor had already put in place.

The spokesperson said: “Not only have the Team Truss copy and paste policies been implemented by Rishi themselves, but they are also re-enacting the two-year-old government policy.

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

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