Tory leadership: Liz Truss dodging scrutiny of tax plans, claims Sunak

Liz Truss is avoiding scrutiny of her "dangerous" plans to tackle the cost of living crisis, her Tory leadership rival Rishi Sunak has claimed.

Ms Truss has promised an "emergency budget" if she becomes prime minister in two weeks' time.

She will reverse National Insurance rises and stop business tax hikes - and has hinted at further cash support for families struggling with energy bills.

But she will not ask for a forecast of how this will impact the economy.

Mr Sunak - who is trailing Ms Truss in polls of Tory members who are selecting the next PM - has seized on this as evidence that her sums do not add up.

The former chancellor has insisted he still has a "shot" at Downing Street, even though many Tory members will have already cast their ballots.

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He says Ms Truss' plans will put the UK's public finances in "serious jeopardy" and fuel inflation, leading to even higher prices in the shops.

In an interview with Vanessa Feltz on BBC Radio 2, he said: "Liz's plans are promising the earth to everybody. I don't think you can have your cake and eat it.

"I don't think life's that simple, and I think her plan risks making the situation worse when you're borrowing that much money for tax cuts at a time when inflation's already going up."

Last month, the Office for Budget Responsibility (OBR), which scrutinises government tax and spending plans, warned that UK debt is already on an "unsustainable path" because of inflation and other factors.

Ms Truss has argued that tax cuts will help to grow the UK's economy and boost prosperity.

Her team say there is no need for the OBR to produce new forecasts, because she is not planning a full budget, though will introduce tax cuts.

"The cost of living crisis means immediate action is required," a spokeswoman for Ms Truss' campaign said.

"A Truss government would seek to act as soon as possible to help people across the UK, by cutting taxes and introducing a temporary moratorium on energy levies."

The OBR usually requires 10 weeks to carry out an analysis of government economic plans, such as a budget.

But a spokesperson for the OBR said: "We would be prepared to publish a forecast for the new chancellor, should they request it."

The chairman of the Treasury Committee, Mel Stride, has written to the chancellor and the OBR to ask whether preparations were being made for a potential emergency budget when a new prime minister takes office.

Mr Stride - a supporter of Mr Sunak - said bringing in "significant tax cuts without a forecast would be ill advised", likening it to "flying blind".

Ms Truss' campaign defended her economic plan as "sensible" and said a "new approach" to the economy was needed.

Her team say they will not reveal what she will do to help families with bills until the leadership contest is over, on 5 September.

Business Secretary Kwasi Kwarteng, a Truss ally who is being tipped as her chancellor, said: "Of course, she will look at what more can be done to help families, but it is entirely reasonable not to detail the exact shape of that support until she has all the information to hand."

The Sunak campaign says Ms Truss' plans are a "mystery" because she cannot deliver help with bills and £50bn worth of unfunded tax cuts in one go.

"It's no wonder they want to avoid independent scrutiny of the OBR in their emergency budget - they know you can't do both and it's time they came clean about that now," a spokesperson added.

Mr Sunak has said he would prioritise bringing down inflation before cutting taxes if he becomes prime minister.

He has said he would introduce more targeted support for households, and has promised to reduce VAT on domestic energy bills from 5% to zero and to cut 3p off income tax by 2029.

Tory MP Kevin Hollinrake, a supporter of Mr Sunak, urged Ms Truss to stop offering "the magic money tree" and instead focus on what support she could offer to low-income households.

"These people are going to be on the streets," Mr Hollinrake told Sky News. "Things are going to be that bad for some households."

Labour leader Sir Keir Starmer joined in with criticism of Ms Truss' decision not to ask the OBR to scrutinise her plans.

He said: "We need an emergency budget. We should have had that months ago, to deal with the cost of living crisis. But the OBR is there to make sure that money is spent wisely and properly. So of course you need the OBR in place for that."

He added: "Labour is leading on this, we have said freeze those bills this winter, make sure people don't pay any more for their energy."

The Institute for Fiscal Studies has called pledges by both Tory leadership candidates "unrealistic" unless they are matched by spending cuts.

The cost of living crisis is being driven by several factors, including soaring energy bills and inflation outstripping wage increases.

Last week, the UK's inflation rate hit 10.1%, with rising food and drink prices making the largest contribution to the change.

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