Tory leadership frontrunner Liz Truss has said there is “too much talk that there’s going to be a recession” as she insisted an economic slump is not inevitable. The Foreign Secretary suggested a “level of ambition” was needed to “change the orthodoxy” and avoid the outcome forecast by the Bank of England.
Her optimism came after Conservative heavyweight Michael Gove warned that she was on a “holiday from reality” with her tax vision as he endorsed her rival Rishi Sunak. With the invasion of Ukraine forcing gas prices up, the Bank warned earlier this month that the UK could suffer the longest recession since the 2008 financial crisis.
The economy shrank by 0.6% in June and forecasters predicted it will contract again in the final quarter of this year and throughout 2023. But Ms Truss reiterated her belief this can be averted as she pins her hopes on immediate tax cuts spurring growth of the economy, as inflation drives a cost-of-living emergency.
