Liz Truss has beaten former chancellor Rishi Sunak in a ballot of Conservative members and will replace Boris Johnson as Conservative Party leader and PM tomorrow. Take a look at proposed policies and what they mean for business and for you
Proposed New Policies from Liz Truss, new PM
With the UK economy is flagging and inflation at a 40 year high, Liz Truss has reportedly blamed the UK’s tax burden for sluggish growth and has promised £30bn in tax cuts to be announced later this month. In the run up to the ballot, Liz Truss has promised to change taxes to make it easier for people to stay at home to care for children or elderly relatives. She has talked about creating new “low-tax and low-regulation zones” across the country to create hubs for innovation and enterprise and has suggested she won’t cut public spending unless there is a way to do so that won’t lead to future problems.
National Insurance: The recent National Insurance rise which came into effect in April is expected to be reversed
Corporation Tax: The planned rise in corporation tax (set to increase from 19% to 25% in 2023) is expected to be scrapped and she has pledged NOT to bring in any new taxes.
Energy Bills Green Levy: The “green levy” part of your energy bill that pays for social and green projects could be temporarily ditched. Her team has been reportedly working on a support package dealing with the forecasted long-term issues on energy supply – sources within the industry are suggesting the government will back freezing bills – this would not necessarily require upfront funding. There are whispers that the government could cover loans to companies which would be repaid by consumers over time in the form of higher fixed prices. Would this cover just the consumer and business? We will have to wait to find out, an initial announcement is pencilled for Thursday 8th September.
In the run up to today, Liz Truss has promised to change taxes to make it easier for people to stay at home to care for children or elderly relatives. She talked about creating new “low-tax and low-regulation zones” across the country to create hubs for innovation and enterprise and has suggested she won’t cut public spending unless there is a way to do so that won’t lead to future problems.
Who will we see in officee?: Will Kwasi Kwarteng be named Chancellor, Home Secretary Suella Braverman and Foreign Secretary James Cleverly? These appointments will be announced tomorrow, when Liz Truss formally takes office.
Then there will be Prime Minister’s Question Time, on Wednesday.
Budget: An emergency budget will be held later this month where we will find out in more detail, what Liz Truss has planned, as the latest Prime Minister.
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