British Foreign Secretary Liz Truss clashed on Thursday over the future of the economy with former Chancellor of the Exchequer Rishi Sunak, both vying for the prime ministership, in a televised debate over the Bank of England’s warnings of a prolonged economic downturn. recession.
Truss is a challenger to Sunak in the race for the votes of the 200,000 members of the Conservative Party, who on September 5 will choose a replacement for Boris Johnson, who was forced to resign after a series of scandals.
The Bank of England announced yesterday that Britain is facing a prolonged economic recession as inflationary energy prices squeeze household budgets.
Dealing with the financial crisis will be assigned to Tras or Sunak a month from today.
The Trust is ahead of the process of choosing the new Conservative leader, while he said that the central bank’s forecast could change with the tax cut. She said the government’s decision to raise tax burdens to the highest level since the 1950s was responsible for the economy’s slide into recession.
“We can change that course and make the economy more likely to grow,” Truss said in the televised debate.
“You just can’t tax your way to growth. I fear that the taxes currently being imposed, which are the highest in 70 years, are likely to lead us into recession.”
As Chancellor of the Exchequer, Sunak raised taxes to cover the financial cost of government support during the COVID-19 pandemic, while helping Britons cope with rising energy bills. These moves drew criticism from several activists in his party.
Sunak said the estimated increase in inflation reinforced his view that the Trust would be reckless to increase borrowing but also cut taxes in the current period.
“We in the Conservative Party need to be realistic and quick, as the lights on the economy are already red and the main cause is inflation,” he said.
“Now, I’m worried that Liz Truss’ plans will make the situation worse,” Sunak said.
“If we simply add fuel to the fire of this spiraling inflation, all of us, all of you, will be faced with higher borrowing rates, with lower savings and pensions, and with the poverty of millions of people. I don’t want that for you,” he said. former Minister of Finance.