She pledged immediate action to boost household bills if, as expected, she wins the keys to No 10 on Monday, promising a plan within her first week. But despite the gathering clouds and warnings that her response to the crisis could run into tens of billions of pounds, she said: “Britain has been through worse, frankly.” Liz Truss has yet to share details of her plan to tackle the cost of living crisis (BBC/Reuters) And he warned the public, who did not get a say on who will become the new prime minister, that there will be difficult decisions ahead and “not all of these decisions will be popular.” Tax cuts that could bring almost £2,000 to high earners were fair, he said, because they were paying more overall. But former chancellor Lord Hammond warned that the cuts would add to already rising inflation and that the Conservatives’ “reputation as a competent government” was at stake. David Davis, on the right of the party, warned Ms Truss she faced a difficult balancing act and warned her not to “give low tax a bad name by going down a path that leads to higher interest costs, huge rises in mortgages or fall of the pound”. Former chancellor Lord Hammond says tax cuts will worsen inflation (PA file) On the tax cuts, David Gauke, former chief secretary to the Treasury, told the Independent: “I think they are the wrong priority at the moment, they are weakening the public finances, increasing the interest on our debt and not targeting those who need it well support the most.” Many Tory MPs privately admit they fear Ms Truss’ tax plans will worsen inflation at a time when experts already predict it could reach as high as 22%. Ms Truss has also come under increasing pressure for her refusal to give more details on her plans to ease the crisis over energy bills. Labor frontbencher Emily Thornberry described Mrs Truss’s attitude as “‘I can’t tell you, I can tell you in a week’”. I mean, why not [tell us now];” he said. Ms Truss is widely expected to become the next Tory leader on Monday (via Reuters) If and when she enters Downing Street, Mrs Truss will face the toughest conditions of any new prime minister in recent years. Experts predict millions will struggle to pay high energy bills, rising in part because of the ongoing war in Ukraine. There are warnings that vital public services such as schools and hospitals could buckle under the soaring bills they face. And police forces are bracing for an increase in crime and disorder this winter as they draw up plans to tackle the cost of living crisis. As well as an announcement on energy bills, Ms Truss pledged to present an emergency budget within a month that would set out plans to cut taxes. Figures showed her plans to scrap the recent rise in national insurance contributions would benefit top contributors by around £1,800, while others could receive as little as £7, she told the BBC’s Sunday Laura Kuenssberg program that the plans it was “fair”. Ms Truss and Rishi Sunak gave interviews on Sunday, with hours to go until they find out who won (BBC/AFP/Getty) “Seeing everything through the lens of redistribution, I think is wrong,” he said. “Because what I’m talking about is growing the economy, and growing the economy benefits everyone.” Ms Truss argues that the tax cut will raise revenue in the long term, in part by encouraging more businesses to invest in the UK. Lord Hammond said that while the Conservative Party supported low taxes, “we have to be realistic and cutting taxes at a time when we have a huge deficit … when inflation is the main problem we have to deal with is simply not the answer.” . . “Tax cuts now, all else being equal, would provide inflationary stimulus,” he told Sophy Ridge on Sunday. Amid the criticism, Ms Truss did appear to push back against suggestions she could review the Bank of England’s interest rate-setting powers, saying she was a “big believer” in its independence. The new Prime Minister will be announced shortly after 12.15 tomorrow at the Queen Elizabeth II Conference Center in Westminster. The winner will be notified of their win only 10 minutes in advance. Boris Johnson will leave power in a few days (PA wire) However, Boris Johnson will remain Prime Minister for almost 24 hours. He and the new Conservative leader will travel to Balmoral on Tuesday to see the Queen. The new Tory leader will be called upon to form a government, triggering the gun for what is expected to be a swift reshuffle. Ms Truss’s ally Kwasi Kwarteng is seen as likely to become the new chancellor, with Ben Wallace remaining in charge of defence. Another staunch stalwart, Thérèse Coffey, is tipped to become health minister, a key post this winter, with Jacob Rees-Mogg expected to go into business. However, Mrs Truss may face the party turmoil that ultimately destroyed her predecessors. Reports this weekend said up to 12 MPs are already planning to submit letters of censure to her and want another leadership vote by the end of the year. Ahead of the result, shadow international trade secretary Nick Thomas-Symonds said Labor was on “electoral footing” and wanted Ms Truss’s government “swept out as soon as possible”. Scotland’s First Minister Nicola Sturgeon has predicted that if the Foreign Secretary governs as she has campaigned in the leadership contest, it would be a “disaster”. Ms Truss’s rival Rishi Sunak, who is widely expected to lose the leadership contest, also confirmed he would remain an MP regardless of the outcome.
