Liz Truss tax cuts are not a ‘handout’ to deal with the cost of living crisis


iz Truss has said she would rather help people struggling to make ends meet by cutting taxes than giving “handouts”.

The Tory leadership hopeful was asked if she would provide more support for rising fuel bills this winter if she becomes the next prime minister.

The foreign secretary told the Financial Times she would certainly “see what more can be done” but said she would do so “conservatively”.

Ms Truss rejected the idea of ​​a “handout”, pledging instead to implement tax cuts.

He told the publication: “Of course, I will see what more can be done. But the way I will work is in a conservative way to reduce the tax burden, not give handouts.”

His comments come against a backdrop that is increasing by the day.

This week, energy consultancy Auxilione said the government’s price cap, which sets the bills of more than 20 million households in the UK, could rise to around £4,000 a year from January.

New analysis from the Office for National Statistics (ONS) also shows that nearly half (44%) of UK adults who pay their energy bills find it very or somewhat difficult to afford in the last two weeks of July. happened

The Bank of England warned on Thursday that Britain faces a two-year decline in household incomes, inflation will rise above 13 percent and the economy faces its longest recession since the financial crisis.

At the Tory leadership in Eastbourne, Sussex, on Friday evening, Ms Truss warned that the UK “must not drive itself into recession” and claimed the bank’s dire forecast was not inevitable.

So far, Ms Truss has promised to end “green levies” on energy bills, roll back increases in national insurance and cancel planned rises in corporation tax.

She told Tory members: “I know there are tough predictions but predictions are not destiny. And what we must not do is put ourselves into recession. We must keep taxes down.

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

However, his rival Rishi Shankar argued that unless inflation was brought under control, there was “no hope” the Tories would win the next election.

Rishi Sink speaks at a hustings in Eastbourne.

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In a thinly veiled take on his adversary, Mr Sink told Hastings that he was “particularly concerned about policies that risk making it (inflation) worse and longer”.

He also insisted that corporation tax was not the “right tax” to focus on, instead talking about the need to reform business taxes “on the things that make a difference”.

Mr Sink said: “I don’t want to stick to the failed policies of the past. That’s what people are suggesting. It hasn’t worked.”

On Friday night, the Foreign Secretary was backed by two Conservative former ministers, Nous Ghani and Dame Andrea Leadsom.

Ms Ghani told Tory MPs in Eastbourne that because of her role as vice-chair of the 1922 Committee for Backbench Conservative MPs, she could not support a candidate at this stage of the race.

Dame Andrea, who worked as Penny Mordant’s campaign manager and business secretary, wrote in the Telegraph that Ms Truss would ensure “every child is given the best start in life”.

As she later attends the Commonwealth Games in Birmingham, the Foreign Secretary is expected to set out a series of economic reforms that her campaign team claims will be “the right kind of investment”. will promote regional development by reviewing funding to supercharge

Some of the reforms include revising the leveling-up formula to fix underinvestment in regional infrastructure and creating low-tax, low-regulation “investment zones” or “full-fat freeports” on brownfield sites.

However, a spokesman for Mr Sink’s campaign accused Ms Truss’ team of “copying and pasting” policies the former chancellor had already put in place.

The spokesperson said: “Not only has Team Truss copied and pasted policies put in place by Rishi himself, they are also re-announcing two-year-old government policies.

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