Truss promises tax cuts, not ‘handouts’ to tackle cost-of-living crisis

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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

We could build a British version of Silicon Valley. We can create real opportunities.

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

At the Tory leadership in Eastbourne, Sussex, on Friday evening, Ms Truss suggested her plans for immediate tax cuts could stave off recession.

So far, the foreign secretary has promised to end “green levies” on energy bills, roll back increases in national insurance and cancel an expected rise 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.

Liz Truss on the hunt in Eastbourne (Gareth Fuller/PA) / PA Wire

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”.

The former chancellor said: “Well, we need to work first to make sure that we can win the election, by then we will have got through this inflation problem.

“And 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.

I do not want to stick to the failed policies of the past. This is what some people are suggesting. It didn’t work.

“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. “

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.”

He added: “Investment in this economy today is no better than it was a decade ago, despite all that we do on corporation tax.

“Because it’s not the right tax to focus on. And that’s where my experience in business, my time as chancellor, my conversations with business has led me to the conclusion that we need to be much more radical.

“We need to reform business taxes to reduce the things that make a difference.”

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”.

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

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.”

Mr Sink’s camp argued the “investment zones” were simply a copy and paste of the Freeports he introduced as chancellor and Ms Truss’ plan to revise the leveling-up formula nearly two years after her reform. came out