Liz Truss continues to assert that she would proceed with tax cuts, despite accusations that they will drive inflation, which is already expected to exceed 13 percent.
Liz Truss ruled out direct aid and insisted on tax cuts in response to the cost-of-living crisis, a stance her opponent deemed “just wrong.”
Ms. Truss, the leading candidate for the Conservatives, has rejected “handouts” to help households endure the worst economic squeeze in sixty years.
In response, her opponent Rishi Sunak stated, “We need to be realistic about this circumstance.
“It is unjustifiable for Liz Truss to rule out additional direct support at this time, and her tax measures won’t help elderly and low-income families, who will need assistance, very much.”
He also stated that he would “go farther” than the support of up to £1,200 for individuals that he announced as chancellor if he becomes prime minister once there is “clarity” over the fall bills.
During a campaign stop in the West Midlands on Saturday, Ms. Truss attacked her opponent’s economic record, blaming it for the approaching recession.
The Foreign Secretary told reporters, “Under the current arrangements, we know that the United Kingdom would enter a recession.
This is not inevitable, but we must prevent it by ensuring our economy is competitive, firms are encouraged to expand, and taxes are kept low.
Having the highest taxes in 70 years will not provide the desired economic development, and will lead to a recession.
Inflation is expected to surpass 13 percent if tax cuts are enacted.
In an interview with the Financial Times earlier this week, Ms. Truss indicated she would proceed with tax cuts despite predictions they would drive inflation, which is already expected to exceed 13 percent.
When asked how she planned to assist households facing escalating energy costs this winter, she claimed that tax cuts and supply-side changes were the answer.
Charles Bean, former Deputy Governor of the Bank of England, told that Ms. Truss’s measures “are not especially well targeted in terms of dealing with the individuals who are hardest hurt” by the energy price increase.
He continued, “The existing package that the previous chancellor, Rishi Sunak, put in place had a more deliberate focus on poorer people, and I believe it’s very apparent that any fiscal maneuver we have at the time should be primarily aimed at them as opposed to a broader audience.”
Conservative voters shift their support to Truss.
Ms. Truss has a seven-point edge against Rishi Sunak as the best prime minister (27% to 20%) and a 26-point lead among 2019 Conservative voters (48 percent to 22 percent ).
According to Opinium research, 2019 Conservatives are more favorable about Ms. Truss than they were two weeks ago, while they are less positive about Mr. Sunak.
A third of respondents (34 percent) believe the government should maintain the current level of taxes and spending on public services, while 26 percent believe both should be increased.
Frontrunner denies video leak
Liz Truss has declined to comment on whether her campaign was involved in the leak of a film in which Rishi Sunak discussed efforts to redirect cash away from impoverished metropolitan regions and toward more prosperous cities.
During a visit to the West Midlands, the Tory leadership challenger was asked if her staff had anything to do with leaking her rival’s scandalous remarks.
She stated to the press, “I’m conducting a positive campaign.”
My campaign focuses on how to unlock Britain’s potential, how to get the economy moving in these challenging times, and how to attract investment to beautiful locations like the West Midlands.
Today, following a visit to the Isle of Wight, Mr. Sunak stated in Southampton that he “absolutely stands by” his previous statements, citing the island as an example of a community that feels it does not receive the financing it requires.
