LONDON, Aug 27 (Reuters) – Britain’s Foreign Secretary Liz Truss is planning to cut VAT by 5% if she is elected as Britain’s prime minister, in a bid to tackle inflation, reports on Saturday the Telegraph newspaper.
According to the daily, which quotes a source who preferred to remain anonymous, the leaders of Liz Truss’s campaign consider this measure to be a “nuclear” option. Other scenarios provide for a 2.5% reduction in VAT.
Calls have multiplied in 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 gas exports towards 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 declared herself 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)