LONDON (Reuters) – Britain’s Foreign Secretary Liz Truss is planning to cut VAT by 5% if elected as Britain’s prime minister, in a bid to tackle inflation, the Telegraph newspaper reported on Saturday. .
According to the daily, which quotes a source preferring to remain anonymous, the leaders of the campaign of Liz Truss consider this measure as a “nuclear” option. Other scenarios provide for a 2.5% reduction in VAT.
Calls have multiplied in Great Britain for the government to come to the aid of households, while an 80% rise in energy prices is expected from October.
Already on the rise following the COVID-19 health crisis, gas and electricity prices have soared since the start of the war in Ukraine and under the effect of Russia’s decision to reduce its exports by gas to Europe.
The British government has indicated that it is working on a support plan against the rising cost of living which will be submitted to the next Prime Minister.
Liz Truss has come out in favor of tax cuts to stimulate the economy. His rival, former finance minister Rishi Sunak, has pledged to provide more direct aid to households struggling with rising energy prices.
(Report Sachin Ravikumar; French version Camille Raynaud)
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