The flaw in Liz’s reliance on tax cuts
Fewer than 60% pay income tax
Over the past week the big debate in the Tory leadership contest has been on the best way of helping families in the face of the huge energy price increases that are due in the autumn.
Liz Truss has been very firm about there being no “handouts” and that people will be helped by her plan to cut taxes almost as soon as she becomes PM.
The big problem for her is that fewer than 60% of UK adults pay income tax so the other 40% won’t get any help.
Now the outgoing PM, Johnson, has added to the pressure on his likely successor saying he is absolutely certain that the next PM will offer more help on paying bills.
With Sunak so far behind in the leadership race the stubborn approach by Truss looks like a godsend.
Mike Smithson