Liz Truss has argued that the Bank of England’s forecast recession was “not inevitable” as it insisted its quick tax cuts were necessary, not Rishi Sunak’s slower pace.
The Foreign Secretary used Sky’s Tory leadership contest televised debate to warn of “very, very difficult times” without taking “bold” action, rather than her rival’s caution.
Allies of former Chancellor Mr Sunak have argued that Ms Truss’ “dangerous” approach would risk further fueling inflation, which is already forecast at 13%.
The financial focus of the battle to succeed Boris Johnson as Prime Minister has only intensified with the bank’s warnings, already largely focused on their two different strategies.
Earlier in the day, interest rates were hiked from 1.25% to 1.75%, the highest in almost three decades, adding to the pain for mortgage holders.
The bank then predicted that the economy would plunge into the longest recession since the 2008 financial crisis.
When questioned by Tory members and Sky’s Kate Burley, Ms Truss said: “Obviously what the Bank of England said today is extremely worrying, but it is not inevitable.
“We can change the outcome and make it more likely that the economy will grow.”
She reiterated her pledge to immediately reverse the Social Security increase introduced by Mr. Sunak when he was at No. 11 and cut other taxes to prevent job losses from a recession.
“Now is the time to be bold because if we don’t act now we are going to face very, very difficult times,” added Ms Truss, who opened the debate before a Mr Sunak barbecue.
https://www.belfasttelegraph.co.uk/news/uk/liz-truss-insists-bank-predicted-recession-is-not-inevitable-41890703.html Liz Truss insists Bank-predicted recession is ‘not inevitable’