Liz Truss’s pledge to immediately reverse tax increases that were implemented by Boris Johnson’s government could result in interest rates as high as 7 per cent, according to her own economic adviser.
The Tory leadership hopeful’s plans to undo hikes to national insurance (NI) and corporation tax would increase interest rates, Professor Patrick Minford said – who insisted that this would be “a good thing”.
Foreign secretary Ms Truss is going head to head with former chancellor Rishi Sunak in the race to become the next prime minister after Mr Johnson was forced to resign following a mass exodus of his government.
