Tory leader needs to have a positive, buccaneering vision

MONDAY night’s Tory leadership debate made it clear that the main difference between the two contenders to become prime minister is tax.

- Tim Newark

Foreign Secretary Liz Truss wants to slash it now, while exchancellor Rishi Sunak plans to balance the books first then cut taxes. However, our worsening economy needs urgent help now and Ms Truss is right to call for this common-sense action.

The cost-of-living crisis is by far the most important issue facing Britons today and targeted tax cuts are the best way to help hard-pressed families.

Ms Truss has already pledged to sweep away the green levy, which makes up to 25 per cent of what we pay for electricity, and cutting VAT at five per cent on domestic bills is a clear benefit of Brexit.

Reducing fuel duty, which with VAT makes up around 45 per cent of petrol pump prices, is another direct way to bring down rocketing inflation, by cutting the cost of deliveries and commercial transport, plus helping families to get around.

Constantly interrupting Ms Truss during Monday’s debate to pour scorn on her plans, Mr Sunak was wrong to say that tax cuts will encourage inflation and lead to higher interest rates.

THIS week, in an open letter, seven top economists declared “targeted tax cuts will not be inflationary. The domestic economy is not overheating.”