How Liz Truss dug in on her pledge to cut the corporate tax hike | Economic policy

Liz Truss has placed respect for principle at the heart of his bid for the Conservative Party leadership, often using his support for corporate tax cuts to illustrate a broader preference for letting individuals and businesses retain more much of their own money.

However, the policy has now been mooted as one of those that could be scrapped to help plug a £65billion black hole of unfunded revenue loss in the mini budget.

Here are the promises made by Truss and some of his key supporters during his campaign and premiership:

July 20

As she squealed on the ballot in the final round of MPs, Truss told the Spectator she didn’t want to raise corporation tax because ‘we need to attract investment to stimulate business and growth. growth”.

July 21

Patrick Minford, whom Truss quoted in a radio interview as an economist who believed tax cuts would not fuel inflation, told BBC Newsnight that the planned rise in corporation tax to 25% was “very detrimental” and “would stop growth in its tracks”.

The following day, he told GB News that the tax increase would “harm the growth and innovation of all these entrepreneurial businesses”.

July 31

In a press release, Truss’s campaign slammed rival Rishi Sunak for backing the planned corporation tax hike he announced as chancellor, calling him ‘the first chancellor since the Labor chancellor. Dennis Healey”. [in 1974] raise corporate tax.

August 2nd

Jacob Rees-Mogg, who was promoted to business secretary after the campaign, told LBC: “I think raising corporation tax at this point where you need the economy to grow is a really rotten politics.”

August 12

Another cabinet supporter – who would later become deputy prime minister – also opposed the rise. Therese Coffey told GB News that ‘we need to put more money in people’s pockets’ and so ‘by not raising corporation tax we are unlocking this opportunity’.

August 22

As the leadership campaign entered its final weeks, the Truss campaign released a new statement saying it “can be trusted to…stop the planned corporate tax hike.”

August 23

Commitment has remained a cornerstone of his leadership bid, with the then Foreign Secretary pointing out: “Taxes are currently at their highest in 70 years. And there is a current proposal to increase corporate tax, which I think would discourage investment and make it harder for us to grow the economy.

September 20

Once Prime Minister and following the Queen’s mourning period, Truss used an interview with BBC political editor Chris Mason to say: ‘Corporation tax needs to be competitive with other countries so that we can attract that investment.

September 23

In the now infamous mini-budget, Chancellor Kwasi Kwarteng confirmed the long-announced decision. He said: “Every additional tax on business is ultimately passed on to families through higher prices, lower wages or lower returns on savings. I can therefore confirm that the planned increase in corporation tax for next year will be cancelled. The UK corporate tax rate will not reach 25% – it will remain at 19%. We will have the lowest corporate tax rate in the G20.

In the aftermath of the mini budget, the Treasury even included a quote from the founder of Small Business Britain welcoming the scrapping of the planned corporation tax hike, saying that this and other measures would “support and encourage the entrepreneurial growth.

29 September

As the mini-budget began to crumble, Truss stuck to his guns. She told the BBC’s West Midlands Political Editor that she wanted to help families, adding: ‘That’s why we’re keeping corporation tax low to keep investment coming into our country .”

October 5

Finally, in his speech to the Conservative Party conference, Truss insisted: “We are keeping corporation tax at 19%, the lowest in the G20.”