Liz Truss may cut value-added tax to 15% to curb UK crisis: The Telegraph

Bloomer News- Liz Truss is looking to cut UK sales tax by up to 5 percentage points Across the board, the Telegraph reported. The move could allay criticism that he lacks a plan to tackle the country’s cost-of-living crisis.

The potential reduction to 15% is so critical that it would mark a change in Truss’ trajectory, according to a newspaper that has strongly supported his leadership campaign against Rishi Sunak.

The Telegraph said the reduction in the general value-added tax rate would be the largest in history and could save the average family more than £1,300 a year. That could protect companies from bankruptcy and could be accompanied by additional measures to help the most vulnerable pay their energy bills, which are set to nearly triple this winter compared to the previous year, the Telegraph said, citing officials.

Hours before Truss’s intention was announced, a hard-hitting editorial in the Sun called the government’s near-silence on the crisis a “disgrace” and urged Truss to abandon traditional Tory ideology.

Truss is the favorite to win the support of Conservative Party members and become Britain’s prime minister. The competition is entering its final week – one week left in London on Wednesday.

The Treasury will present the next prime minister with plans inspired by former Prime Minister Gordon Brown’s response to the 2008 financial crisis as part of a series of options to offset rising energy bills, The Telegraph reported.

The Telegraph, citing analysis by the Institute for Fiscal Studies, said a 5-point cut would cost the taxpayer £38 billion to stay in place for a year. It can also temporarily reduce inflation by about two points.

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