Liz Truss supporters say she excluded further financial assistance to households struggling withcost of livingafter allegations broke out I was forced to deny that I was doing it. The Conservative leader frontrunner's declaration that she will 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 Boris Johnson to agree on an emergency budget or "kill millions of vulnerable and irresponsible children and pensioners."
Inflation is expected to reach 13%, with five quarters of recession continuing, the Bank of England said Thursday. In addition, projections of energy price caps rising from £1,971 to beyond have 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."
Mr. Sunak countered her comments, stating: Pensioners and low-income earners are exactly the families who need help.
However, Trade Secretary Penny Mordaunt today denied Mr Truss had ruled out expanding direct payments.
A former leadership candidate and endorser for the foreign secretary, she told Sky News:
"She focuses on helping people keep more of the money they earn.
"Take money from people and create 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.
But she did not suggest that this would include direct support for fuel costs, instead focusing on "immediate" tax cuts totaling around £30 billion. I guess.
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.
She also plans to scrap the previous prime minister's plan to raise the corporate tax from 19% to 25% in 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," said Truss. He wrote in the Sunday Telegraph.
“We will take immediate action 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." There is no way,” he warned.
"Of the £7 spent to abolish the National Insurance premium hike, £6 will go towards the top half of the income distribution," the Foundation's Katie Schmucker told The Independent.
And Mr Sunak warned that a premature tax cut risks further accelerating inflation.
"Injecting more than £40bn of debt into an economy in which inflation is spiraling is risking a downturn," he said in the Sunday Times. told
. It might be okay, but I think that means making bets on people's savings, pensions, and mortgage 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 follows a report commissioned by Mr. Brown, which found 13 million households (almost half of the country) at risk of fuel shortages after October's price hike. became clear.
"A financial time bomb will hit in October as his second rise in fuel prices in six months will send shockwaves through every household, wrecking millions of people." It will blow up in the family," the former Labor Prime Minister wrote. 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.
"13 million households and 35 million people (an unprecedented 49.6% of the UK population) are now 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."
A new report conducted by Professor Donald Hirsch of Loughborough University says that existing government support for low-income households is insufficient to offset the losses they face. It has been found that some households are losing up to £1,600 a year in deteriorating livelihoods.
Conservative MP Damian Hines acknowledged that the Prime Minister had not had enough in these "very difficult times", so he acknowledged the package of support Mr Sunak had created, saying that if he becomes Prime Minister,
A Sunak supporter told Sky News: He is ready to do it if necessary. ''
