Liz Truss will review the modification of the Bank of England mandates on inflation

Foreign Minister Liz Truss, a leader in the race to become Britain’s next prime minister, said she will seek to change the Bank of England’s mandate to make sure it controls inflation.

Speaking at a search of Conservative party members in Cardiff on Wednesday, he said inflation was caused by “huge” supply-side shocks after the pandemic and the war in Ukraine and said he wanted to review the bank’s mandates. central, which aims to maintain inflation at 2 per cent.

The central bank is expected to raise interest rates on Thursday, perhaps by half a percentage point, due to rising prices. In June, consumer price inflation in the UK was 9.4%, the highest for the past 40 years.

He said at the event: “The best way to deal with inflation is monetary policy and what I said is that I want to change the mandate of the Bank of England to make sure it matches some of the most effective central banks in the world in the future. to control inflation “.

Truss added, “The last time the warrant was reviewed was in 1997 under Gordon Brown. Things are very, very different now.”

The Foreign Minister, who presented himself as the low-tax, high-growth candidate, pledged to reduce the projected hike in national insurance and introduce low-tax investment zones to reinvigorate the economy and support families. through the cost of living crisis.

“What’s simply wrong right now is raising taxes on ordinary people when they’re struggling to pay their fuel bills, they’re struggling to pay their food bills,” he said.

Rishi Sunak at the Tory hustings in Cardiff

Rishi Sunak at the Tory hustings in Cardiff. He said he was open to the idea of ​​examining the inheritance tax rules © REUTERS

His campaign got a boost Wednesday when former health secretary Sajid Javid offered his support. In a comment in the Times newspaper, Javid praised the “sharp focus and willingness of the foreign minister to challenge the status quo.”

“Having worked closely with him for years in the cabinet, Liz is delighted to have Sajid on her team,” Truss’s campaign said. “Her support signals that Liz is reuniting the party and that she is joining behind her bold plan to cut taxes, grow the economy and do good for the country.”

Recent YouGov polls have placed Truss firmly at the head of the leadership race, with 69% of members in favor of the foreign minister, compared with 31% supporting former chancellor Rishi Sunak.

Speaking on the eve of the BoE’s rate-setting meeting, Sunak warned that rushing to “premature tax cuts” before the country reduced inflation would make the problem worse and raise interest rates.

“I’m going to make compelling inflation my number one economic priority. And I will provide a long-term sustainable tax plan which means that people can deposit the money they have saved, “he said before meeting with party members.

Former Tory leader Lord Michael Howard lent his support to the former chancellor at the hustings, drawing parallels between Sunak and the late Margaret Thatcher.

“He hated inflation. So does Rishi Sunak. He hated the thought of an increase in loans. So does Rishi Sunak. He would never have counted irresponsible and unfunded tax cuts. Neither Rishi Sunak, “he told the audience in Cardiff.

Speaking with members of the Tory party, Sunak also said that while examining the inheritance tax rules “he was not the one who had established a plan to do”, he was open to it.

He argued that supporting aspiration was a “conservative value” and the inheritance tax was part of it, but stressed the importance of rewarding those in paid work.

“So, over time, is that something we should be looking at? Of course we should, because hard-working people should be rewarded for it, “she said.