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Banks (Finance)

Liz Truss to Rush Through Tax Cuts Ahead of Schedule

Strategic Insights

— 2 min read

Liz Truss, the Foreign Secretary and leader of the Conservative party, is set to introduce tax cuts six months earlier than planned as part of her cost of living crisis package. The move, which could see the reversal of the National Insurance rise and suspension of the green levy on energy bills, could be implemented within days of the budget, increasing the pay received by workers from November. Truss's team claims to be confident in their ability to immediately implement the tax cut based on the advice they have received.

Key Takeaways:

  • Liz Truss plans to introduce tax cuts six months earlier than planned to tackle the cost of living crisis.
  • The reversal of the National Insurance rise could be implemented within days of the budget.
  • The suspension of the green levy on energy bills could increase the pay received by workers from November.
  • Truss's team claims to be confident in their ability to immediately implement the tax cut based on the advice they have received.
  • The move could help households cope with soaring costs, including the predicted PS3,687 price cap on energy bills in October.
  • A poll by Public First found that more than two in five people believe the Government is not taking the cost of living crisis seriously.
  • Truss has pledged to work night and day to tackle inflation, which she believes was exacerbated by the Bank of England's monetary policy.

Statistics:

  • The price cap on energy bills could reach PS3,687 in October, according to analysts at Auxilione.
  • The price cap on energy bills could reach PS4,400 in January, according to analysts at Auxilione.
  • 55% of respondents to a poll by Public First agreed that the Government could do more to tackle the effect of rising costs but was choosing not to.
  • 45% of respondents to a poll by Public First believe the Government is taking the cost of living crisis seriously.
  • PS186 would be retained by a household in which two people each earning PS20,000 if the National Insurance increase was scrapped, according to calculations by Rishi Sunak's team.

Sources:

  • "Liz Truss will rush through tax cuts up to six months earlier than planned, The Sunday Telegraph can disclose" (The Sunday Telegraph)
  • "A campaign source added: 'Based on the advice we have had, we are now confident that we can immediately do the tax cut.'" (The Sunday Telegraph)
  • "Yesterday, analysts at Auxilione, an energy consultancy, predicted the price cap on bills could reach PS3,687 in October - close to double today's already record levels..." (The Sunday Telegraph)
  • "A poll by Public First for this newspaper found that more than two in five people believe the Government is not taking the cost of living crisis seriously..." (The Sunday Telegraph)
  • "According to the survey of 2,011 adults, more than half (55 per cent) agreed that the Government could do more to tackle the effect of rising costs but was choosing not to." (The Sunday Telegraph)

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