iz Truss has insisted tax cuts, not “handouts”, will help people in the cost-of-living crisis, a view his rival Rishi Singh has described as “false”.
Ms Truss said she would push ahead with massive tax cuts if she became prime minister, despite concerns they would drive up rising prices.
Asked how she would help families with rising bills this winter, the Tory leadership hopeful told the Financial Times: “Of course, I will see what more can be done. But as “The way I will work is to reduce the tax burden in a conservative way, not hand out.”
But Mr Sink criticized his plan, saying: “As we heard from the Bank of England earlier this week, inflation is a major risk to our economy, particularly with energy bills now at this level. Expect to be more than we previously thought.
“We need to get real about this situation. It is absolutely wrong to rule out more direct support at this time, as Liz Truss has done, and even more so with her tax proposals for people like pensioners. Or low-income people who aren’t exactly supporting the same kind of families. Help is needed.”
It was warned by the Bank of England on Thursday that Britain faces two years of falling household incomes, with inflation – currently 9.4% – rising to more than 13% and the economy facing a financial crisis. It will suffer the longest recession since.
Energy consultancy Auxilione said this week that 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.
During a campaign tour of the West Midlands on Saturday, Ms Truss set out her plans to end “green levies” on energy bills, increase national insurance and implement supply-side reforms that could prevent a recession. Is.
He told reporters: “What I’m all about as a Conservative is people keeping more of their money, growing the economy so we can avoid recession.”
Ms Truss pointed the finger of blame at Mr Sink’s legacy as a former 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.”
Because as the Bank of England said, they’re worried about inflation being embedded – then there’s no hope we’re going to win the next election.
He also challenged economic forecasts at a Tory leadership meeting in Eastbourne, Sussex, on Friday, saying “forecasts are not destiny and what we shouldn’t do is put ourselves into recession”.
However, Mr Sink argued that unless inflation is brought under control, there is “no hope” for the party in the next general elections.
In a thinly veiled take on his opponent, the former chancellor told Hastings: “The first thing we need to do to make sure we win the election is to get through this inflation problem by then. .
“That’s why I’m particularly worried about policies that risk making it worse and longer.
“Because it’s a problem that’s not just for this winter. It’s a problem for next winter and beyond.
“Because as the Bank of England said, they’re worried about inflation being embedded – then there’s no hope we’re going to win the next election. Absolutely none. It’s as simple as that. “
Jack Berry, a supporter of Ms Truss, defended her plans and denied the tax cuts would increase inflation.
The chairman of the Northern Research Group of Tory MPs told Times Radio: “People on low incomes will be absolutely horrified, rightly so. So, the idea of enabling people to keep more of their money suddenly seems like would turn it into a waste of money, I think that’s complete and utter nonsense.”
Elsewhere, Mr Sink said “political correctness” stood in the way of tackling child sex gangs as he vowed to force police to record the race of those involved.
In an interview with GB News, he said: “It’s much more widespread across the country than we all realise.
“We all know the reason people don’t pay attention to it. It’s because of political correctness and they’re afraid to call out the fact that there’s a certain group of people who are perpetrating these crimes, and I think it’s wrong, and I want to change it as Prime Minister.”
Ms Truss, who is due to attend the Commonwealth Games in Birmingham, was expected to deliver economic reforms that her campaign team claimed would “supercharge the right kind of investment”. will promote regional development by reviewing funding for
His plans include reviewing 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.
He argued that the “investment zones” were simply a replica of the freeports he launched as chancellor, and Ms Truss’ plan to revise the leveling-up formula comes nearly two years after her reform.
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.