Liz Truss supporters denied she excluded further financial assistance to households struggling withcost of living. She declared that she would not provide "handouts."
Leadership rival Rishi Sunak has suggested he is planning another multi-billion dollar aid package if he becomes prime minister in September, citing the Trust.Direct aid during high energy prices
Anti-poverty activists and experts House told The Independent that the new prime minister will soon need to double aid to £15 billion. It is meant to avoid the searing hardships of many Britons.
Former Prime Minister Gordon Brown also urged Sunak, Truss and Prime Ministers Boris Johnson to either agree to an emergency budget or to "help millions of vulnerable and irresponsible children and pensioners
The Bank of England announced Thursday that inflation will reach 13% and five quarters of recession will continue. In addition to forecasts, the forecast that the energy price cap will rise from £1,971 to beyond has increased fears of a catastrophic cash crisis for families. Starting at £3,700.
Cost of living was also pushed to the top of the agenda in the Tory leadership election. This is because Ms. Truss said she would provide assistance by "relieving the tax burden, not subsidizing it."
Mr. Sunak countered her comments, stating: Pensioners and low-income people are just like families in need of help.
Penny Mordaunt endorsed Liz Truss for Tory leadership (Victoria Jones/PA)
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Trade Minister Penny Mordaunt, however, today denied Mr Truss' denials of expanding direct payments.
A former leadership candidate and endorser for the foreign secretary, she told Sky News:
"What she's looking at is helping people keep more of the money they earn.
"Taking money from people and creating very complex
"We need to simplify this, we need to ensure that households are as resilient as possible, and we need to pay people a lot of tax money." One way to do that is to stop imposing them.”
Ms Truss has promised an emergency budget in September if elected Tory leader from 160,000 Conservatives. .
This is not the first time Liz Truss' remarks have been "misunderstood"
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But she did not suggest that this would include direct support for fuel costs, instead focusing on the "immediate" implementation of tax cuts totaling around £30bn.
} She is understood to aim to reverse Mr Sunak's 1.25% increase to national insurance within days, rather than waiting until April as is customary practice.
It also plans to scrap the corporate tax hike from 19% to 25% planned by the former prime minister for 2023 and to suspend the environmental tax on the energy bill.
"Despite the Bank of England's harsh assessment this week, I do not believe in letting a great country resign to manage its decline or accept the inevitability of a recession." Mr Truss wrote in the Sunday Telegraph.
“We will act immediately by injecting emergency funding and charting a solid path to grow the economy to help fund public services and the NHS.
The Joseph Rountree Foundation, an anti-poverty think tank, said that because many of the poorest people do not pay taxes, tax cuts are "not quite effective in getting money to those who need it most."
Rishi Sunak, despite previously facing criticism for not doing enough as Prime Minister,
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``Six of the £7 spent to abolish the National Insurance , will be used for the top half of the income distribution," the foundation's Katie Schmucker told The Independent.
And she warned Mr Sunak that premature tax cuts risk further accelerating inflation.
"Injecting more than £40bn of borrowed money into an economy where inflation is spiraling forward risks hurting the economy," he said on the Sunday Times. } told.
"That might be nice, but I think it means betting on people's savings, pensions, and mortgage interest rates. I'm not going to bet."
The former prime minister said the public deserved "clear realism, not starry boosterism" on the issue.
The scale of the imminent crisis is the result of a report commissioned by Mr Brown that found 13 million households (almost half of the country) at risk of fuel shortages after October's price hike. It became clear.
"A financial time bomb explodes in October, and his second fuel price hike in six months sends shockwaves through every household, putting millions in jeopardy." probably,' the former Labor Prime Minister wrote in. Observer
"A few months ago, Jonathan Bradshaw and Antonia Kuhn of the University of York predicted that 27 million people in 10 million households would run out of fuel if fuel prices rose 54% in April.
"Currently, 35 million people in 13 million households (an unprecedented 49.6% of the UK population) are at risk of fuel shortages in October."
If Johnson, Sunak and Truss cannot agree on an emergency budget, Brown said, "they should summon Congress and force them to do so."
Existing government support for low-income households is insufficient to offset the losses they face, according to a new report conducted by Professor Donald Hirsch of Loughborough University. We found that some households were living up to £1,600 worse a year.
Conservative MP Damian Hines acknowledged that the Prime Minister had not been good enough during these "very difficult times" and acknowledged the package of aid measures Mr Sunak had devised, saying that if he becomes Prime Minister, , suggested that more support would be available.
A Sunak supporter told his Sky News: “In terms of forecasting future energy tariffs, the situation has worsened since it was introduced. I am ready to do so as needed."
