United Kingdom

Truss insists his plan to cut taxes to spur growth is no joke

It Minister of foreign affairs He insisted his plan for an emergency budget, which would roll back the rise in National Insurance, scrap a planned rise in corporation tax and suspend green levies on energy bills, was “not a gamble” and would not boost inflation.

He said he would take on the economic “consensus” of the past two decades and allow increased government borrowing to finance his tax cut plan.

Ms. Truss served alongside a leadership rival Rishi Sunak Johnson’s cabinet, however, said the former chancellor’s plans were “wrong”, insisting he was arguing against raising national insurance within the government.

He said about his tax plans. “It’s not a game, it’s an economic reality that the higher taxes you have, the more growth will be stifled.”

He argued that increased borrowing and tax cuts would not increase inflation, arguing that the Treasury’s “orthodoxy” and the opinions of many leading economists had not delivered growth.

“What gambling is, that’s what we’re doing at the moment because the UK is currently forecast to go into recession,” he said.

“So we have to do something else to get growth going, to put money in people’s pockets.”

Competitors Liz Truss and Rishi Sunak (PA) / PA wire

In his first broadcast interview of the leadership campaign, he said Mr Johnson’s record as prime minister was “extremely positive”.

“I wanted Boris to continue as the prime minister. I think he did a fantastic job with the 2019 election, winning us a massive majority. He delivered Brexit, he delivered vaccines,” he said.

“Unfortunately, we reached such a position that he did not receive the support of our parliamentary party.”

He had “made a few mistakes over the past year” but “the positive side of the balance sheet has been extremely positive,” he said.

Ms Truss said she was “wrong” to back Remain in the 2016 Brexit referendum.

And he denied he modeled himself on Margaret Thatcher, insisting “I am my own person”.

But Mr Sunak insisted he was a “Thatcherite” as he sought to address concerns among Tory members that he supported a high-tax, big-government approach.

The former chancellor claimed the tax burden, the highest in 70 years, was the result of the pandemic and the unprecedented level of government intervention required to guide the country through the public health emergency.

Mr Sunak was the parliamentary party favorite with 137 votes to Ms Truss’ 113 of the Tory MPs.

But bookies have put the Foreign Secretary as the front-runner as early indications show he is more popular with Tory members ahead of the summer campaign.

Writing in the Daily Telegraph, Mr Sunak said: “My values ​​are Thatcherite. I believe in hard work, family and integrity.

“I am a Thatcherite, I am running as a Thatcherite and I will govern as a Thatcherite.”

He said that “low inflation and sound public finances” are needed as the basis of the economy.

But “the best way to achieve economic growth is to cut taxes and red tape and encourage private sector investment and innovation.”

Mr. Sunak has promised to cut taxes, but only if inflation is under control.

The pair will try to win the support of local politicians on Thursday when they attend private meetings of the Association of Conservative Councillors.

They will then tour the UK to attend 12 meetings of Tory members who will vote for their next leader, with the results announced on September 5.

Mr Sunak insisted his rival would not be able to defeat Labor leader Sir Keir Starmer in the general election.

But after a bitter parliamentary battle, and with concerns in the party about the damage the summer’s clashes could cause, he said Ms Truss was someone “I love and respect”.

Truss insists his plan to cut taxes to spur growth is no joke

SourceTruss insists his plan to cut taxes to spur growth is no joke

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