Sink slams Truss’ ‘starry-eyed boosterism’ as clash over economy continues

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Ashish-Sink has contrasted her “clear-eyed realism” with the “starry-eyed boosterism” of her Tory leadership rival Liz Truss, while she called for September’s emergency budget to cut taxes “immediately”. What is the commitment to use for?

The two candidates vying to replace Boris Johnson as prime minister continue to clash over their plans for the economy, with the Bank of England warning this week that the UK is headed for its longest recession since the financial crisis. will happen, the rate of inflation will be higher than that. 13%

Mr Sink has argued that inflation needs to be brought under control before cutting taxes, saying that the unfunded tax cuts promised by Ms Truss would further push up prices.

That means gambling with people’s savings, their pensions, their mortgage rates, that’s not a gamble I’m willing to take.

In an interview with The Times, the former chancellor said: “The priority for me is not to do things that make it worse and I think that putting £40 billion plus of borrowed money into an economy that has inflation Inflation is on the rise, threatening to make it worse.

“That might be fine but I think it means gambling with people’s savings, their pensions, their mortgage rates, that’s not a gamble I’m willing to take so I make it worse. do not want to.”

He told the paper that the British public deserved “clear-eyed realism, not starry-eyed boosterism”.

But Ms Truss said she did not accept the “inevitability of recession” as she promised to cut taxes “immediately” if she wins the race for No 10.

“Despite this week’s scathing review by the Bank of England, I do not believe in resigning our great country to managing decline or accepting the inevitability of recession,” the foreign secretary wrote in the Sunday Telegraph.

“I will hit the ground running by setting a strong course to grow our economy, bringing in an emergency budget to help fund our public services and the NHS.

“I will use it to urgently tackle the cost of living crisis by cutting taxes, reversing the rise in National Insurance and suspending the green levy on energy bills”.

The newspaper reported that Ms Truss wants to speed up her plan to scrap the National Insurance increase by six months, implementing the change during the emergency budget days in September rather than the Treasury’s usual time. Wait until April as per rules.

Liz Truss speaks at Solihull Moors FC as part of her Tory leadership campaign (Jacob King/PA) / PA Wire

During a campaign visit to Solihull on Saturday, the foreign secretary told reporters: “What I’m about as a Conservative is people keeping more of their money, growing the economy so that We must avoid recession and the best way to do that is through low taxes, but also by boosting investment in our economy.

He criticized Mr Sink’s economic legacy as chancellor, saying: “Under the plans at the moment, what we know is that the UK is headed for recession.

“It’s not inevitable, but we need to avoid it by making sure our economy is competitive, that we’re encouraging business to grow and that we’re keeping taxes down.

“The highest taxation in 70 years will not lead to economic growth and is driving our country into recession.”

The Foreign Secretary has previously insisted that tax cuts, not “handouts”, will help households with rising fuel bills this winter.

She told the Financial Times: “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.”

Responding to his comments, Mr Sink said: “It is absolutely wrong to rule out more direct support at this time, as Liz Truss has done, and even more so because her tax proposals would target pensioners or low income earners. People like people won’t get a lot of help, which is exactly the kind of family that needs help.

Rishi Shankar, pictured at a campaign event in Edinburgh, says the race has yet to be decided (Jeff J Mitchell/PA) / PA Wire

Meanwhile, ex-prime minister Gordon Brown urged Mr Johnson, Mr Sink and Ms Truss to agree an emergency budget this week or risk “plunging millions of vulnerable and innocent children and pensioners into deep poverty”. Take advantage.

“The reality is stark and undeniable: A financial time bomb will explode for families in October as the second round of fuel price hikes in six months sends shock waves through every household and pushes millions over the edge.” Mr. Brown wrote in an op-ed. In the Sunday Observer.

Arguing that monetary policy had fueled inflation, Ms Truss suggested the Bank of England’s remittances, which were last set in 1997 under Mr Brown, should be reviewed.

“I fully support its independence but its mandate cannot be bound by the same Brownian consensus of twenty-five years,” she wrote in the Sunday Telegraph.

Mr Sink said any threat of the Bank of England revising remittances would be “disturbing” and likely to “scare off international investors”.

Speaking after the biggest interest rate hike in 27 years, he told The Times that the Bank was “not alone in reducing both the scale and duration of inflation”, adding: “I believe in an independent central bank. I have and I believe they should be forced to work to control inflation.

Former Prime Minister Gordon Brown has called on the UK government to implement an emergency budget to help struggling families (Jane Barlow/PA) / PA Wire

Elsewhere, Mr Sink set out his plan to reform post-16 education, including scrapping university degrees that do not improve the “earning potential” of students, Russell of world-class technical colleges. Grouping and introducing a British Baccalaureate which would prevent 16 -Year-old children from leaving Maths and English.

The former chancellor and Ms Truss are seeking support from Tory members to become the next party leader and prime minister. Voting has started and the result will be announced on September 5.

Mr Sink said his way of trying to build ground against Truss was to “love bomb” party loyalists by criss-crossing the country and meeting hundreds every day.

With the race still undecided, he told The Times: “I’m probably the underdog in this thing … but I don’t feel like the Poles when I’m out”.