Truss insists on tax cuts, not ‘handouts’ to help families amid rising prices.


iz Truss has insisted tax cuts, not “handouts”, will help people in the cost-of-living crisis, while her rival Rishi Singh warned there was “no hope” the Tories would win the next election. Will until they get inflation under control.

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.”

It comes as energy consultancy Auxilione said this week that the government’s price cap, which determines 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 them in the last two weeks of July. happened

The Bank of England warned 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 its longest contraction since the financial crisis. Could go into recession again.

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

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 past 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 to them a bit of nonsense. It will turn into a waste, I think that is complete and utter nonsense.

Rishi Singh during the hustings event (Gareth Fuller/PA) / PA Wire

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 this is wrong, and as Prime Minister I want to change it.

“I want to make sure that all police forces record the race of those involved, which is currently not done because people don’t want to do it.

“I want to create a brand new life sentence for those involved in manufacturing with very limited parole options because I will not let political correctness get in the way of dealing with this absolutely heinous crime.”

Ms Truss, who will later attend the Commonwealth Games in Birmingham, is expected to deliver economic reforms that her campaign team claim will “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.