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UK’s Liz Truss prepared to increase tax cut plan, newspaper says

Conservative leadership candidate Liz Truss speaks at a hustings event, portion of the Conservative party leadership campaign, in Eastbourne, Britain, August 5, 2022. REUTERS/Peter Nicholls

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LONDON, Aug 6 (Reuters) – Liz Truss, the front-runner to become Britain’s next prime minister, plans to rush through tax cuts sooner than planned so that they can raise the country’s flagging economy, the Sunday Telegraph reported.

Truss was considering accelerating by half a year her intend to reverse this year’s upsurge in social security contributions which have been pencilled set for April 2023, the newspaper said.

Advisors to Truss believed the cut could possibly be introduced within days of a crisis budget that her government would deliver in September, if she wins the ruling Conservative Party’s leadership race that’s because of end on Sept. 5, it said.

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Truss’s rival, former finance minister Rishi Sunak, says cutting taxes now would add more fuel to Britain’s soaring inflation rate that is set to surpass 13% in October, based on the Bank of England’s latest forecasts.

The BoE in addition has said Britain is because of enter a 15-month recession starting later this season, something Truss says adds urgency to her intend to cut taxes.

Truss, writing in the Sunday Telegraph, said she wished to “immediately tackle the expense of living crisis by cutting taxes, reversing the rise on National Insurance and suspending the green levy on energy bills.”

Sunak proposes another approach giving support right to lower-income households which are most subjected to the surge in power bills that will rise sharply again in October.

On Saturday, he reiterated he wished to “go further” compared to the support he provided as finance minister before he resigned in protest at the leadership of Prime Minister Boris Johnson in July.

“Its simply wrong to eliminate further direct support at the moment as Liz Truss did and also her tax proposals will not help very significantly, people like pensioners or those on low incomes,” he said.

A recently available poll by YouGov showed Truss held a 24-point lead over Sunak among Conservative Party members who’ll pick the party’s next leader and Britain’s next prime minister.

In her Sunday Telegraph article, Truss kept up her criticisms of the BoE, saying it had exacerbated the jump in inflation and she’d “work all the time” to repair the issue.

“This is why I would like to look around the planet at what the very best performing central banks are doing to regulate inflation and how exactly we can ensure our Bank is delivering what we are in need of it to provide,” she said.

BoE Governor Andrew Bailey has denied the BoE would be to blame for the inflation surge, saying it started to raise interest levels sooner than other central banks & most of the recent acceleration of prices is due to Russia’s invasion of Ukraine.

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Writing by William Schomberg; Editing by Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles.

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