Liz Truss warns Rishi Sunak’s tax plans lead UK into recession as she is out to challenge ‘economic orthodoxy’
Tory leadership contender Liz Truss insisted this a.m. that her economic plan to cut taxes immediately is not a gamble and will not further fuel inflation.
Truss warned that the current tax plans – which include an increase in corporation tax from 19 per cent to 25per cent in April – will lead the UK into a recession.
She told BBC Radio 4’s Today programme this morning that she is challenging the “economic orthodoxy” that has prevailed for the past few decades.
Truss revealed she had argued against the National Insurance rise in Cabinet because she said it was a “mistake”, both to break a manifesto commitment and “to raise taxes in these very difficult economic times”.
Asked what the current level of debt interest is, Truss said: “I know we’ve got significant debt interest… tens of billions of pounds.”
“We have got the highest taxes for 70 years and we have got lower debt than the United States, than Japan, than Canada.”Liz Truss this morning
“No other countries are raising taxes.”
She rejected the assertion that increasing borrowing to cut taxes amounts to “socialism”, as her critics have claimed.