Liz Truss, the frontrunner to become Britain’s next prime minister, said on Tuesday that she still prefers tax cuts to direct assistance for households facing a 230 percent increase in annual energy bills in January to roughly 4,200 pounds.

Last week, the Bank of England warned that Britain is on track for a lengthy recession as high oil prices push inflation to 13%. Charities, industry groups, and politicians have asked the government to establish support measures as soon as possible. 

When Rishi Sunak was finance minister in May, he launched a 15 billion pound package that included a 400-pound energy bill credit for this winter. Since then, wholesale energy prices have risen even further.

When asked how she would respond, Conservative Truss said she would deal with the situation as it happened, but she preferred tax cuts to stimulate the economy.

When asked about direct support, she told reporters, “What I don’t believe in is taxing people to the highest level in 70 years, and then giving them their own money back,” She has also promised to repeal green charges, which will lower costs by less than 8%.

Truss’ reaction raised worry on social media on the same day that forecasting firm Cornwall Insight released its updated forecasts, and amid fears that the Conservative leadership competition has created a political vacuum in the government. 

Outgoing Prime Minister Boris Johnson has stated that any new policies should be established by his successor after taking office on September 5.

Source: Reuters


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