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Truss: Only my plan for growth will reverse UK’s slow decline

By Edward Malnick SUNDAY POLITICAL EDITOR

‘Change is something that people might find worrying. But we do have to change, the status quo isn’t an option’

LIZ TRUSS today declares that only her plan to transform Britain into a low-tax, high-growth economy will reverse the “current trajectory of managed decline”.

In her first newspaper interview since becoming Prime Minister, Ms Truss says that “tough decisions” are needed to boost growth in order to increase wages, investment and employment.

She insists that the public is more concerned with jobs and education than with “what the polls were last year”, warning that voters “feel that there has been a failure to address some of the fundamental issues that affect our country”.

Unveiling reforms to cut red tape for small businesses, the Prime Minister says that she wants to combat Britain’s “lack of dynamism”.

Seeking to quell discontent among Tory MPs over measures such as the abolition of the 45p tax rate, she says that she wants to “bring people with me on this journey”.

Ms Truss’s intervention in The Sunday Telegraph comes on the eve of the Conservative Party conference and after a string of backbenchers joined opposition parties in publicly criticising her plans.

Today, Michael Gove, who backed Rishi Sunak in the Tory leadership contest, is expected to join those demanding a change in course.

Addressing the scale of reaction to the Government’s fiscal loosening and its potential effect on the deficit, the Prime Minister acknowledges that “change is always something that people might find worrying”.

Ms Truss says her planned combination of tax cuts and supply-side reforms as part of a “reset” to “get the economy going” and drive growth.

She says: “That’s what people need to look at … the fundamentals of what we’re doing and the way the British economy does need to change,” and adds: “We cannot continue on the current trajectory of managed decline ... we must take a new direction.”

Today, Ms Truss discloses the first of her supply-side reforms intended to dovetail with her tax cuts will be lowering the threshold for firms to qualify as a “small business” and therefore benefit from an exemption to regulations.

She says: “One of the things we’ll be announcing is raising the definition of a small business, in terms of regulation, from 250 employees to 500 employees.” The Prime Minister said the change would release an additional 40,000 firms from red tape and “make it easier for them to get on with their business.”

The Sunday Telegraph also reveals that Ms Truss is planning to drive the creation of new “childminder agencies” under a French-style system to slash the cost of childcare.

The Prime Minister states: “It’s always difficult, after a period of consensus, which there has been, to change. Change is always something that people might find worrying. But what I’m fundamentally saying is we do have to change, the status quo isn’t an option.

“If we had not acted and let this situation drift, we would have been seeing businesses go out of business, we would see inflation up to five points higher than it would have been.”

She dismisses suggestions that she would sack Kwasi Kwarteng, saying: “The Chancellor is doing an excellent job and we are working very closely together. The decisions that have been taken are the right decisions that had to be taken in a hurry.”

Taking aim at her critics, including the Labour Party, she says: “I think it’s a declinist mentality, the idea that Britain’s best days are behind us and that all this is about is managing the distribution between people, rather than growing the size of the pie.

“I believe we can grow the size of the pie. But we need to take the tough decisions to do that.”

Meanwhile, writing in this newspaper, Jake Berry, the Tory chairman and former leader of the Northern Research Group of backbenchers, said that many commentators criticising the measures were people who previously spent time “bashing Brexit”.

He added that spending cuts were needed to help tackle the budget deficit.

Patrick Minford, a free market economist who has advised the Prime Minister, predicted growth of more than two per cent next year if Ms Truss pursues her policies.

Amid private dissent from some figures in government, one minister said: “The state of the party is the most parlous I can remember. I can’t believe I would say this, but I don’t know if Liz will survive long term. But I hope she can right the ship.”

‘We are overturning the tired economic orthodoxy that has prevailed for decades, and are forging a new direction’

‘Labour want to take more money away from every family in this country whilst telling you that government knows best’

This week, the Conservative Party will gather once again in Birmingham. From Andy Street to Joseph Chamberlain, the Conservatives have a proud history within the city.

One hundred and ten years ago, the city was the site of a merger between the Conservative and Liberal Unionist parties, founding the most successful political party in the world.

It is fitting that the Conservative Party Conference has once again returned to where that merger between two differing factions took place, the great city of Birmingham.

A lot has changed in the past month, we have a new king and a new prime minister. But what hasn’t changed is the task at hand.

We are gathering under the slogan of Getting Britain Moving, because that is exactly what this party, indeed, this government is doing.

We must be realistic that this country faces severe challenges in the wake of Putin’s invasion of Ukraine and Covid.

Therefore, we must address the issues that we have long faced, from getting Britain building to channeling investment into local areas to helping families get on in life.

We are re-energising communities and recognising that talent, drive and enthusiasm exists across the whole of the UK. But there is always more to do.

We are creating new low tax, low regulation investment zones which will drive growth, we are improving planning rules to suit local areas, and equalising the levelling up formula so no area is left behind.

However, we recognise that, with the looming threat of a recession, we cannot continue with business as usual – we are overturning the tired economic orthodoxy that has prevailed for decades, and are forging a new direction for the country.

That is why we are focused on driving economic growth. This is key to delivering what we all want to see: more jobs, higher wages and additional money for public services including our NHS, police and education.

We will achieve this and get our economy growing, through tax cuts and reform . While the commentariat will decry them, the same people bashed Brexit. But it is these tax cuts, which we have already seen, that will get that growth going.

They will reward hard work and give people more of their money to invest in their family’s future, not to be swallowed up by an ever-expanding Whitehall.

But this will all be for the birds unless we are cutting down on public expenditure, ensuring value for money is achieved.

Our prime minister recognises that – and is delivering. Never have the words of the late great Margaret Thatcher, ‘there is no such thing as government money, only taxpayers’ money’ rung truer.

This year in Birmingham we have an exciting agenda that will showcase many of these ideas, but I know the party thrives on new ideas.

So, this year we have placed a greater emphasis on the fringe events, ensuring that announcements in the main hall do not overshadow some of our country’s brightest and best thinkers. As the age-old maxim states: ‘knowledge is power’ and that is exactly where our party must be – in power.

If we have seen anything useful from the Labour Party conference (and I’m not sure we did), it is that they simply cannot be allowed anywhere near the corridors of power.

Chillingly, they want a big state on the side of vested interest, in the pocket of union barons, hell bent on making lives a misery.

They want to take more money away from every family in this country whilst telling you that government knows best.

However, the Conservatives have a bold plan to see Britain through the difficult times ahead and get us out of the other side, stronger. That is what I am looking forward to showcasing in Birmingham next week.

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2022-10-02T07:00:00.0000000Z

2022-10-02T07:00:00.0000000Z

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