Former Prime Minister Liz Truss has taken aim at Jeremy Hunt over his tax rises crushing economic growth after the Chancellor this morning reignited a Tory civil war on financial policy. Mr Hunt had told the Treasury select Committee this morning that “mistakes were made” in Ms Truss’s mini Budget during her 49-day Premiership.
In a statement, a spokesman for Ms Truss repeated her criticism of his decisions to give Britain its highest tax rates since the Second World War.
The spokesman said: “Liz was always clear that you can’t deliver economic growth and thus reduce borrowing by hiking taxes.
“Raising Corporation Tax from 19 percent to 25 percent looks like a pretty bad mistake right now when you consider how a firm like Astra Zeneca is locating its new plant in Ireland where Corporation Tax is half the rate now being levied by the British Government.
“The Treasury looks like it will lose revenue as a result of that decision.”
It followed Mr Hunt’s jibe at the Treasury select Committee.
Hunt was asked by MPs if the government’s economic plans had been “consistent” over recent administrations, or whether they were more “bumpy”.
He replied: “I think it has been more coherent than you might think, with one exception, yes there were some mistakes in the mini-budget, which we had to reverse.
“It is clear you can’t fund tax cuts through increased borrowing.”
Later he agreed with Labour MP Rushanara Ali that Ms Truss had cost the country over £1 billion a day with the calculation that the mini Budget cost the country £55 billion in her 49 days as Prime Minister.
Ms Truss appointed Mr Hunt shortly before she resigned whhen she sacked Kwasi Kwarteng as Chancellor and he reversed most of her mini-budget policies.
He carried on as Rishi Sunak’s Chancellor but Ms Truss has launched a fightback with her new Conservatives for Growth group championing tax cuts.
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