UK: The foreign secretary and finalist PM contender Liz Truss has once again vouched in favour of ‘tax cuts’, calling them the best way to avoid the period of recession in the economy. The Bank of England had earlier warned of the economy falling into recession as it increased the interest rates from 1.25% to 1.75%. This has been her vision the tackle the currently prevalent cost-of-living crisis in the country of the United Kingdom.
Whereas the other finalist in the PM race, the former chancellor Rishi Sunak plans on tackling the phase of inflation,on priority basis. This has added to his reluctance to cut off the taxes as that could further worsen the inflation in the country, which has already hit 13%, i.e. highest in the last forty years.
To relieve the citizens from financial stress, Truss has further vowed to scrap April’s National Insurance rise, cancel a planned corporation tax rise and temporarily suspend green levies over the energy bills. She spoke of believing in Conservative methods like lowering the tax leverages and not in ‘giving out handouts’ to the households.
She has also criticised the economic legacy of the former chancellor Rishi Sunak as Britain heads toward the recession period. “That is not inevitable, and this could have been avoided if bolder moves were made”, says Truss. We need to make sure that our economy is competitive, that we’re encouraging businesses to grow and that we are keeping taxes low.”
The differences in policies for economic revival of the country will be the key factor in the decision regarding the next Prime Minister of the United Kingdom, which will be out on September 5th.