Truss attacks Bank of England failed to tackle inflation

Foreign Secretary Liz Truss has signaled that she will tighten scrutiny of the Bank of England minister if she wins the race to become the UK’s next prime minister after accusing the agency of failing to can cope with rising inflation.

ShoesThe foreign secretary told the Sunday Telegraph she would “review” the central bank’s mandate to “make sure it is tough enough on inflation”.

The BoE have operated independently since 1997. The government has forced them to set an inflation target of 2%. Inflation came in at 9%, well above that target.

Truss hinted she could interfere with the bank’s independence, saying she – as chancellor – wants to set a “clear direction” for it on monetary policy.

Many Tory MPs have blamed the BoE for losing its grip on prices, after stressing that higher inflation is temporary and will peak at 5% – despite the global fuel crisis. .

Truss, who struggled the first Friday leadership debate on televisionare battling to shortlist the final two shortlisted candidates that – by the end of next week – will be put forward before Tory membership.

In a bid to appeal to right-wingers, the Foreign Secretary has pledged to cut £30 billion of most unrefundable taxes and promised to cut red tape.

The Truss campaign has suggested there is a “gap” of around £30 billion in public projections with taxes likely to rise higher than expected. Tom Tugendhat, too, is considered an outsider in the final shortlist of five candidates.

But Paul Johnson, the head Institute for Fiscal Studiessays “anyone serious about meeting these (UK fiscal) targets” will not believe there is £30 billion left over to spend.

Truss also said she wants to lift the ban on oil and gas exploration in the UK, letting local regions decide if they want to continue with the controversial measure.

Meanwhile, Rishi Sunak has sought to emphasize his standards as a Brexiter as he has promised to spend his first 100 days as prime minister figuring out which of his 2,400 old rules. The EU should be eliminated. The government planned to “burn” old European laws, but Sunak said he would speed up the process.

The former prime minister’s team was dismayed by the way Eurosceptic Tory MPs flocked to Truss – even though she voted for Remain six years ago – and Penny Mordaunt, the trade minister.

Sunak indicated that he campaigned for Leave, unlike others, despite being warned that it would be the end of his political career. “As prime minister, I will go further and faster in using the freedoms Brexit has given us to cut the bulk of EU regulation and bureaucracy,” he said. Lieu is holding back our growth.

The JL Partners poll found Sunak to be the overwhelming choice of voters in most key target constituencies for the Conservatives. Of the 365 seats won by the Tories in 2019, Sunak is the favorite with 76%, with Mordaunt at 5% and Truss at 0. Tugendhat comes in at 19% with Kemi Badenoch, the fifth candidate, at 0.

Mordaunt told the BBC on Sunday morning she wanted to cut the value-added tax on petrol from 20 per cent to 10 per cent while raising the basic average income tax threshold. The minister argued that the VAT cut would be financially neutral as there would be additional revenue from higher fuel sales.

Mordaunt acknowledged that the policies would mean adjustments to government tax revenues but said urgent interventions were needed to help those affected by the rising cost of living.

Deputy Prime Minister Dominic Raab is skeptical of claims that halving the VAT on fuel will be self-funding: “I would like to see a serious analysis of self-funding tax cuts,” he said. told Sky News.

A Labor official said the claim was “absurd” as it implied that people would buy twice as much petrol as before. Instead, it could cost more than £8 billion, he suggests.

Tugendhat, the most central candidate, said he would not give up ahead of Tuesday’s vote on Monday, saying: “I have never turned down a challenge because the odds are against me.”

Alok Sharma, the cabinet minister who led the COP26 international climate talks last year in Glasgow, said he would not rule out resigning if the new prime minister scrapped a target to cut carbon dioxide emissions to zero. not by 2050. Sharma accused several candidates of “telling the Observer: “Whoever wants to lead our country needs to demonstrate that they take this issue very seriously.”

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