Ashish Cink has contrasted her “clear-eyed realism” with the “starry-eyed boosterism” of her Tory leadership rival Liz Truss, suggesting her tax cut ambitions mean people’s savings and pensions Have to “gamble” with.
The two candidates vying to replace Boris Johnson as prime minister have continued to clash over their plans for the economy after the Bank of England warned this week that Britain could be in its longest recession since the financial crisis. will go, inflation will increase further. More than 13 percent
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 has claimed a recession is “not inevitable”, calling her plans the best way to avoid it.
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.”
Mr Sink condemned his rival’s recent threat to review the Bank of England’s remittances, saying such a move 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.
Ms Truss has promised to roll back the rise in national insurance, end the green levy on energy bills and scrap a planned rise in corporation tax.
His supporter Jack Barry, chairman of the Northern Research Group of Tory MPs, defended his proposals and denied they would increase inflation.
He told Times Radio: “People on lower incomes would be absolutely horrified, rightly so. So, the idea that enabling people to keep more of their money would suddenly turn them into a kind of spendthrift, I think this is complete and utter nonsense.”
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.
Elsewhere, the former chancellor set out his plan to reform post-16 education, which includes scrapping university degrees that do not improve students’ “earning potential”, world-class technical colleges. These include creating a Russell Group and introducing a British Baccalaureate that would prevent 16-year-olds from leaving Maths and English.
Ms Truss and Mr Sink are being backed by Tory MPs to become the party’s next 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”.