LIZ Truss has claimed that “handouts” are not the best way to help households as the cost-of-living crisis continues to squeeze households across the country.
Speaking to the Financial Times, the Tory leadership contender instead claimed that tax cuts and “radical economic reform” were better options, promising to implement them if elected to PM.
Truss said: “Of course I will look at what more can be done [to help households],” she said. “But the way I would do things is in a Conservative way of lowering the tax burden, not giving out handouts.”
Experts have stated that tax cuts risk fuelling inflation and dramatically increasing inequality. Inflation is currently at a 40 year high of 9.1%, with the Bank of England forecasting this rising to above 13% this year by October.
Elsewhere, Truss said she can “absolutely rule out” holding a snap general election if she is elected PM on September 5.
Truss has claimed raising corporation tax was “completely counter-productive”. She said: “I think that will stymie growth and make it harder to pay down debt.”
The combined profits of the largest energy companies in the first quarter of this year reached almost £82 billion, as energy bills drastically rise across the country.
She said that if she was elected to PM she would hold a Budget “straightaway” to reverse the planned corporation tax increase to 25%. This reversal would take away £17 billion from public finances.
Let’s be blunt - given how acute the economic crisis is, this will be tantamount to leaving many people without food and heating this winter. If the UK government won’t act to protect those most vulnerable, it must give devolved governments tax/welfare/borrowing powers to do so https://t.co/5grTvixQoy
— Nicola Sturgeon (@NicolaSturgeon) August 5, 2022
First Minister Nicola Sturgeon tweeted in response to the article: “Let’s be blunt - given how acute the economic crisis is, this will be tantamount to leaving many people without food and heating this winter.”
“If the UK government won’t act to protect those most vulnerable, it must give devolved governments tax/welfare/borrowing powers to do so.”
