Truss: Fund Spending Plans With Cuts Not Taxes

The Truss / Gove banter last night has been blown out of all proportion, with one headline about the story actually reading: “Tory Cabinet Falls Into Open Warfare”. It was a joke about Gove rhyming with stove. Believe it or not, there are more important Cabinet splits than this one…

The row has distracted from the more interesting contents of the Truss speech, which was as sound an intervention as you are ever going to get from a minister in a Theresa May government. You can read it in full here. One interesting line was her endorsement for the Centre for Policy Studies’ campaign to fund the government’s spending plans with cuts rather than tax rises. She wants MPs to attend a series of meetings to make proposals for cuts to waste and low value areas of spending, to be published by the CPS at Tory party conference.

“The more government spends, the higher taxes have to be… higher tax means less money for me to decide when to go on holiday or buy a new car… there are many ageing countries with advanced economies that do not have high tax and spend… Canada, after the misconceived expansionist years in the 1960s, when they raised taxes and nationalised businesses…rescued their economy in the 90s by cutting spending and balancing the budget… All across the world, countries are addressing their problems not simply by raising tax and spend, but by reshaping and reinventing themselves… Some of my colleagues are not being clear about the tax implications of their proposed higher spending… I want to take a zero-based, zero-tolerance approach to wasteful spend. We need to take a look at ourselves and think “what is the best way to use the money entrusted to us?” We have to make every pound pull its weight. We have to make every pound pull its weight.”

It is all too rare these days that any Tory makes these noises. It is the polar opposite of Number 10’s approach, and far more interesting than the Gove bluster. At least one leadership candidate will be backing lower taxes next time round…




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