Liz Truss says cutting taxes on rich will boost the economy

South West Norfolk MP Liz Truss is favourite to become the next prime minister.
The foreign secretary is tipped to win the Tory leadership race and become the new prime minister on Tuesday. Credit: PA

Liz Truss told the BBC's Laura Kuenssberg that cutting the tax burden on the richest would increase the underlying growth rate of the UK.

She claimed that the UK’s focus on what she called “distribution” - or making sure the wealthiest pay most - has made everyone poorer.

I haven't heard any leading British politician, let alone the UK’s expected next prime minister, make the case for 'trickle down' economics for donkey's years, largely because the economic evidence for its efficacy is scant.

If she follows through, Truss represents perhaps the most important shift in UK economic policy since Thatcher - if, as I say, this is a conviction she will sustain.

This is a question, by the way, because she massively rowed back today on the remarks she made earlier in the campaign that suggested she was not a fan o f Bank of England independence.

Today she was adamant it would be appalling for her to advise the Bank how to fulfil its mandate to reduce inflation to target, presumably because advisers have pointed out to her that her seeming scepticism about Bank independence has been rattling the confidence of investors in UK government debt, and she’ll need their confidence if the cost of servicing those debts isn’t to rise even more painfully and prohibitively.

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