Liz Truss, frontrunner to guide the UK, has an unorthodox financial plan

But Truss, in a debate that same day hosted by Sky News, struck an optimistic note, saying a recession was “not inevitable.”

“We can change the outcome, and we can make it more likely that the economy grows,” she said.

What’s her remedy? A set of personal income and business tax cuts amounting to more than £30 billion ($37 billion), according to estimates by the Institute of Fiscal Studies.

Tax cuts, Truss said, will help rein in runaway prices and boost growth — a claim that’s left many economists dumbfounded.

Inflation squeeze

Truss has promised to reverse an income tax hike introduced in April, and ditch a planned increase in taxes on businesses next year from 19% to 25% that was designed to help pay for the costs of pandemic relief.

She’s counting on these cuts to stimulate growth, encourage businesses to invest, and ultimately help bring down inflation — which the Bank of England expects to edge above 13% later this year.

But without a meaningful reduction in government…

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