Economic policy

Liz Truss promises biggest economic policy shift in decades if she becomes prime minister

Liz Truss has pledged to bring about the biggest economic change the UK has seen in 30 years in her bid to become the next prime minister.

The foreign minister said she wanted a “bold new approach” to tackle the economic crisis facing the country.

During the leadership campaign, Ms Truss pledged a radical overhaul of the tax system if she enters Downing Street, which would include scrapping green levies on energy bills.

In an interview with the sunday telegraph, Ms Truss said: “What I want to achieve is the biggest change in our economic policy for 30 years. This is the magnitude of the challenge we face.

She said she would seek to abolish “Stalinist” housing targets – unpopular with some Tory MPs – if elected.

“I want to abolish Stalinist housing targets inspired by Whitehall. I think that’s the wrong way to generate economic growth,” she said. “The best way to generate economic growth is from the grassroots by creating these investment incentives through the tax system, by simplifying the regulations.”

His plan also involves reviewing European Solvency II rules that limit insurers, and freeing up “more of our pension funds to be able to invest in high-tech startups”.

She told the newspaper: “There is a tendency in Whitehall to be cautious, not to take risks and to be slow. But we can’t afford to wait any longer. It is imperative that we continue to provide these post-Brexit opportunities. »

Meanwhile, Rishi Sunak – who called his rivals’ plans for tax cuts a ‘fairy tale’ in the first leadership debate – has pledged to tear up remaining EU red tape. he was elected the new Conservative leader.

It comes as a number of strongly pro-Brexit MPs back other candidates – including Ms Truss, even though she backed Remain in the 2016 referendum.

Mr Sunak said he would “remove the burden” of EU data laws which he said “stop UK tech companies from innovating and public services from being able to share data to fight crime”.

The former Chancellor added that he would also “speed up our clinical trial approval process” by creating a single approvals service, highlighting the success of the UK’s Covid vaccine rollout.

Mr Sunak said: “In 2016 my party leadership told me that if I supported Brexit my political career would end before it even started. I supported Brexit anyway because I knew that it was the right thing for the country.

“We must take advantage of these opportunities by abandoning the mass of unnecessary regulations and the low growth mentality that we inherited from the EU.”

The former Chancellor dominated the first two rounds of MPs, although he still falls short of the 120 votes needed to guarantee him a place in the final round of party members.

International Trade Minister Penny Mordaunt remains in second place while Ms Truss is third.