UK News: Liz Truss plans Thatcher-esque shake up of the Treasury if she becomes Prime Minister

Tax cuts will revitalise the spirit that made Britain writes PATRICK MINFORD

  Tax cuts will revitalise the spirit that made Britain writes PATRICK MINFORD PATRICK MINFORD: Just as I did with Mrs Thatcher, I am happy today to stand with Liz Truss, and defend the economic vision she has laid out in her leadership campaign. I believe the British economy can easily withstand the increase in borrowing needed to fund Liz Truss’s key promise: to start cutting taxes from her first day if elected to No 10. We need to revitalise our entrepreneurial spirit, just as Mrs Thatcher did, and this is the way to do it.

Tory leadership contender Liz Truss plans to evoke the spirit of Margaret Thatcher and solidify Whitehall's control of the economy if handed the keys to 10 Downing Street, it was revealed last night.

Ms Truss, who has shot into pole position as the frontrunner for the Prime Minister's hotseat, is considering the formation of a 'supergroup' of allies to lead the Treasury into the next generation.

Key allies including Business Secretary Kwasi Kwarteng, Brexit Opportunities minister Jacob Rees-Mogg and veteran MP John Redwood are said to be in line for formal positions under any cabinet led by Britain's third female PM.

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According to sources, Ms Truss will also work to tackle 'groupthink' prevalent within the Treasury and increase the number of economic advisers working in Downing Street.

She has already set lofty targets of 2.5 per cent economic growth per year, and laid out an ambitious plan to help would-be homeowners with Bank of England measures that could allow rent payments to be used in future mortgage assessments.

A campaign insider told the Telegraph: 'Liz rightly thinks we can’t have failed, business as usual economic policy and won’t be captured by Treasury groupthink.

'She will be bold on the economy and will lower taxes, keep tight control of spending, and push through supply-side reforms that will create higher growth and more sustainable growth.'

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Tory leadership contender Liz Truss plans to evoke the spirit of Margaret Thatcher and solidify Whitehall's control of the economy if handed the keys to 10 Downing Street © Provided by Daily Mail Tory leadership contender Liz Truss plans to evoke the spirit of Margaret Thatcher and solidify Whitehall's control of the economy if handed the keys to 10 Downing Street Ms Truss, who has shot into pole position as the frontrunner for the Prime Minister's hotseat, is considering the formation of a 'supergroup' of allies to lead the Treasury into the next generation. Pictured: Ally and veteran MP John Redwood © Provided by Daily Mail Ms Truss, who has shot into pole position as the frontrunner for the Prime Minister's hotseat, is considering the formation of a 'supergroup' of allies to lead the Treasury into the next generation. Pictured: Ally and veteran MP John Redwood

Ms Truss's hawkish tone on the economy harkens back to the Thatcher era - with promises to drive growth, slash taxes and tighten up spending.

She will also reportedly seek to abolish the joint No 10/No 11 economic unit, the brainchild of former SPAD Dominic Cummings, over concerns it has failed to improve upon the effectiveness of economic policy decisions.

Instead, Ms Truss and her chosen chancellor will work closely as one team, per sources, with particular focus on fostering a strong economic presence within Whitehall.

Rishi Sunak hits campaign trail but is given Margaret Thatcher memoir to sign in bizarre encounter

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Mr Redwood, who served as Mrs Thatcher's head of policy in the 1980s and helped push through her privatisation bid, has lavished praise on Ms Truss's leadership credentials.

He said: 'It’s refreshing that we can have tax cuts at a time of a massive hit to people’s incomes. She has come up with the right measures.

'I wish her every success and I will help her in any way. But I'm not an adviser to the campaign or anything.'

  Liz Truss plans Thatcher-esque shake up of the Treasury if she becomes Prime Minister © Provided by Daily Mail Key allies including Business Secretary Kwasi Kwarteng and Brexit Opportunities minister Jacob Rees-Mogg are said to be in line for formal positions under any potential cabinet led by Britain's third female PM © Provided by Daily Mail Key allies including Business Secretary Kwasi Kwarteng and Brexit Opportunities minister Jacob Rees-Mogg are said to be in line for formal positions under any potential cabinet led by Britain's third female PM

During a visit to Norfolk today, the Foreign Secretary was asked if she can actually deliver on all the pledges and promises she has made.


Video: Tory leadership race: Where do the candidates stand on policy? (PA Media)

Speaking to broadcasters, Ms Truss said: 'We can deliver. I will reverse the national insurance increase. We didn't need to do it. And we can afford that within our budget.

Sunak allies insist ‘all to play for’ in bid for No 10 even as Truss pulls ahead

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'I also think that by keeping taxes low, we will attract more business and investment into counties like Norfolk, which will help grow the economy and bring those tax revenues in.'

She went on: 'And I'm also committed to challenging the current orthodoxy around investment spending.

'We need more of it going into rural areas. More of it going into left behind areas, more of it going into parts of Britain that don't have a good infrastructure yet, and that's what I'm committed to do.'

The leadership frontrunner again reiterated her desire to assess the Bank of England's mandate, telling those on the campaign trail: 'It was set in 1997 in completely different times, and one of the issues around controlling inflation is around monetary policy.

'That’s not just about interest rates, it’s also about quantitative easing that is taking place.

'And I want to look at the best practice of central banks around the world, look at which banks have been best at controlling inflation, and revisit the mandate.

'I haven’t made any decisions, and the chancellor hasn’t made any decisions, about exactly how that mandate would change. But I think it’s important that we review our monetary policy and the monetary policy settings and the mandate of the Bank of England, and make sure it is delivering for the times we’re in now.'

Tory leadership: How Liz Truss and Rishi Sunak's tax cut plans aim to tackle UK debt and inflation

  Tory leadership: How Liz Truss and Rishi Sunak's tax cut plans aim to tackle UK debt and inflation The race to become the new prime minister and Tory leader is very much a battle of rival tax plans: how fast and how deep. Rishi Sunak today unveiled plans for a 4p cut in income tax that would take the basic rate to 16 per cent, though not until the end of the decade.Though backed by more Tory MPs than Liz Truss, she has taken a lead in polls of party members thanks to her tax plans. And in this election, they are the only people who matter.She has outlined plans to halt a future planned rise in corporation tax due to come in to effect in the spring, taking it from 19 per cent to 25 per cent.

Ms Truss's hawkish tone on the economy harkens back to the Margaret Thatcher era - with promises to drive growth, slash taxes and tighten up public spending © Provided by Daily Mail Ms Truss's hawkish tone on the economy harkens back to the Margaret Thatcher era - with promises to drive growth, slash taxes and tighten up public spending

It came as Ms Truss reignited her economic row with Rishi Sunak yesterday as she accused the former chancellor of 'scaremongering' over his warnings about her economic plans for power.

The Foreign Secretary has vowed to bring in tax cuts worth £20billion and increase defence spending by around £23billion if she becomes party leader and prime minister.

Mr Sunak, in contrast, has been more cautious, warning that inflation - currently 9.4 per cent and still expected to rise - must come down before taxes are cut.

He has also sited comments by Professor Patrick Minford, a Truss supporter, that her plans could see interest rates hit seven per cent, adding more than £5000 a month to the average mortgage.

The different positions have helped Ms Truss lead polls of Tory members who will vote to put one of them in No10.

Ms Truss last night looked to have solidify her chances of beating Rishi Sunak and becoming prime minister after coming out on top as they were grilled by Tory members for the first time.

The Foreign Secretary was more relaxed that previous slightly wooden outings in the campaign as she played up her local roots in her home city of Leeds.

She joked about her time in the city before vowing to beat 'patronising, plastic patriot' Keir Starmer at the next election if she becomes Prime Minister.

She was also applauded for saying she was proud to have worked for Boris Johnson - and for backing gender-specific toilets.

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