Truss said he would go ahead with the proposed tax cuts despite claims they would fuel inflation and “kill” the Conservatives’ chances of winning the next election. With pressure mounting as households face a financial squeeze, the Foreign Secretary has rejected handouts and insisted on tax cuts costing more than £30bn as the country moves into recession. “Of course I will look at what else can be done,” Truss told the Financial Times. “But the way I would go about it is in a conservative way to reduce the tax burden, not hand out pamphlets.” Tory challenger for the leadership of the Truss, Rishi Sunak, who has proposed tackling rising prices before tax cuts, said the party could “say goodbye” to the chance of winning the next election if it does not quickly tackle inflation under control. ‘I want to level up everywhere’: Rishi Sunak defends taking money from deprived urban areas – video Speaking at a leadership rally in Eastbourne on Friday, the former chancellor said there would be “no hope of us winning this next election” amid rising prices. On Thursday, the Bank of England predicted that inflation would soar to 13% in October as it raised interest rates for the sixth time in a row. The bank’s inflation target is 2%. Workers have been warned against asking for pay rises and more than half of Britons are cutting back on gas and electricity use at home as the cost of living crisis worsens, according to the Office for National Statistics. “If we don’t act now to prevent inflation from becoming persistent, the consequences later will be worse and require bigger rate rises,” said Andrew Bailey, governor of the Bank. “Returning inflation to the 2% target remains our absolute priority, no ifs, no buts.” The news comes after UK Business Secretary Kwasi Kwarteng admitted it will be more than a month before ministers can introduce measures to tackle the rising cost of living. Kwarteng, who is backing Truss as the next leader of the Conservative party, said the expected “support package” from Boris Johnson would come after his holiday. Both Johnson and the chancellor, Nadhim Zahawi, went on holiday as the Bank of England warned that the economy would enter its deepest recession since the 2008 financial crisis. Subscribe to First Edition, our free daily newsletter – every morning at 7am. BST Truss, who has already promised to reverse a rise in national insurance rates, is expected to present further proposals to boost economic growth as he attends the Commonwealth Games in Birmingham on Saturday, the BBC reports. “One of the issues I want to look at is the control of the money supply and in particular the policy of quantitative easing and the impact it has had,” Truss told the Financial Times. The winner of the Conservative leadership contest will be announced on September 5.
