As part of a package to curb public service spending dubbed the “war on waste”, Truss claimed up to £8.8bn could be saved by creating regional pay commissions. These would in effect have reduced the pay packages offered to officials seeking new contracts outside London and the South East, given the relatively lower cost of living away from the capital. Sunak’s supporters immediately seized on the policy as an example of “levelling” – with Tees Valley Tory mayor Ben Hutchen saying millions of nurses, police and armed forces would effectively face pay cuts. While Truss’s campaign claimed the criticism was a “deliberate misrepresentation”, they came back less than 24 hours later and said the proposal would not be “submitted”. But it’s not the only policy touted by the two prime ministerial candidates that may not stand up to greater scrutiny.
Liz Truss engagements
Tax cuts
The tax was the key dividing line in the contest, with Truss promising to scrap a 1.25 percentage point rise in national insurance contributions meant to pay for the NHS and social care rise, which came into effect in April . He has also pledged to cancel a sharp rise in corporation tax that had been planned for next year. It has suggested the plans will help tackle the cost of living crisis – but the Resolution Foundation has pointed out that only 15% of the benefits from the NIC cut will go to the poorest half of the population, who will be hit hardest by the price energy rises. Liz Truss is pictured with supporters at an event in Ludlow. Photo: Jacob King/PA Meanwhile, it has been repeatedly suggested that unfunded tax cuts could boost inflation, forcing the Bank of England to push interest rates – perhaps not to 7%, as financial guru Patrick Minford has suggested, but more than what would they do differently, the Foundation Resolution that suggests maybe 1 percentage point.
Reduce crime by 20%
Truss has pledged to oversee a 20% reduction in basic crime before the end of parliament and that figures for homicides, serious violence and neighborhood crime will be published with force. These statistics are already collected by the government and the announcement did not offer new resources or say how such a dramatic reduction could be achieved. Sir Peter Fahy, former chief constable of Greater Manchester Police, said the targets had been shown to create perverse incentives where officers focused on easier wins to boost statistics rather than complex cases or the most vulnerable. The Truss plans are similar to measures discussed by senior Home Office officials and police chiefs in late 2020 and 2021, but which did not come into effect.
Promises by Rishi Sunak
Tax cut by 20% until the end of the next Parliament
Team Truss called it a U-turn by Sunak, who has previously warned against promising immediate tax cuts, but is less obvious than his pledge to cut VAT on energy bills, which he refused to do as chancellor. The most obvious loophole in this policy is the desirability of making promises about what tax cuts can or cannot be made by 2029, without any idea of the fiscal situation. The Institute for Fiscal Studies points out that while this is a significant cut, it is still significantly less than the net tax increase Sunak announced as chancellor, which was “comfortably more than double”. Sunak’s new policy would still leave total taxation, as a percentage of national income, at its highest level since around the early 1950s. Sunak’s offer comes because the Treasury has “room” before it breaks fiscal rules on borrowing. But given the volatility of the financial situation, it’s easy for that breathing space to disappear. Rishi Sunak (left) speaks during an event in Ludlow. Photo: Jacob King/PA
Charge for GP appointments
Sunak said he would introduce a temporary fee of £10 for patients who miss a “second or subsequent” GP appointment. The approach appears to be aimed at incentivizing patients not to miss their appointments. but was criticized by physician leaders and health policy experts. The NHS Confederation warned that the cost of running the scheme was likely to exceed the money raised and suggested it was more important to tackle the reasons people cannot attend, for example with home visits and evening appointments. The BMA said it would breach the principle that primary care is free at the point of use, while failing to address the real problems facing the NHS. Subscribe to First Edition, our free daily newsletter – every morning at 7am. BST
Prevent
Sunak said people who malign the UK should be treated as extremists and referred to the government’s de-radicalisation programme, Prevent. The intent was to ensure that “those who have an extreme hatred of our country that leads them to endanger national security can be identified and diverted from a destructive course.” However, the definition of extremism in the Deterrence strategy is not legally binding and is anyway a voluntary programme. While Sunak’s campaign emphasized that criticism of the government or its policies would not be included, concerns were raised that it would risk “descending into thought crimes” and further damage Prevent’s reputation. His announcement also made no mention of far-right extremism, which parliament’s intelligence and security committee found in its report last month was “on the rise” and that MI5 had absorbed responsibility for tackling it without the necessary resources.
