There doesn’t HAVE to be a recession, says Truss
LIZ truss insisted that a recession was not inevitable last night as the tory leadership candidates’ plans for the economy came under close scrutiny.
in the very first question of a live tory leadership debate on Sky News, the frontrunner was asked what she could do to lessen the impact of the looming slowdown.
it came just hours after the Bank of England predicted the economy will plunge into recession for more than a year and inflation will soar to 13 per cent, as it hiked interest rates to 1.75 per cent.
Miss truss replied: ‘What the Bank of England have said today is of course extremely worrying, but it is not inevitable. We can change the outcome.’
She said her proposals to reverse the National insurance hike and suspend green levies on energy bills would provide immediate help for struggling families, while scrapping a planned corporation tax rise would attract investment.
‘You simply can’t tax your way to growth,’ she said. But her policy was soon criticised by another Conservative party member in the audience, who told her: ‘this is not sound economics.’
the woman, who gave her name as Jill from tunbridge Wells, in Kent, said she did not want her children and grandchildren ‘encumbered with huge debt’ and she asked if interest rates would return to levels as high as 15 per cent.
Miss truss insisted: ‘We’re nowhere near that position at all.’ She said it would be counter-productive to ‘balance the books prematurely’, because increasing taxes would hinder investment and growth, making it more difficult to pay off debts in the longer term.
She also said she would not impose a
‘We can change the outcome’
further windfall tax on oil and gas firms.
She said: ‘if we have a reputation for levying a surprise tax on any industry that makes a profit, that is a big problem for our country.’
She also insisted she has nothing to hide, telling the debate: ‘ there are no skeletons in my closet. i think everything i’ve ever said and done is known about very publicly.’ the Foreign Secretary launched a defence of Boris Johnson, who she insisted had not deceived MPs over Partygate. ‘i’m very clear he didn’t mislead Parliament,’ she said.
She faced tough questioning from host Kay Burley over her changes in stance on a range of topics from wanting to abolish the monarchy as a teenager to opposing Brexit, and her recent U-turn on regional pay for civil servants.
Miss truss replied: ‘i have developed my views, i’ve considered things differently. And i think that’s important.’
her rival Rishi Sunak then also faced a series of questions. the former chancellor dismissed the tax cuts put forward by Miss truss, saying: ‘i’m not promising you tens of billions of pounds of goodies straight away, because i don’t think that’s the right thing to do. it’s risky.’
he also warned his rival’s plans will make the dire economic situation worse. he said: ‘ We need to get real and fast, because the lights on the economy are flashing red and the root cause is inflation. i’m worried Liz truss’s plans will make the situation worse.’
As the debate ended, the audience was asked to vote for who should be the next prime minister
– and a show of hands suggested Mr Sunak was the favourite.