Tory leadership contender Liz Truss plans to evoke the ghost of Margaret Thatcher and strengthen Whitehall’s control of the economy if the keys to 10 Downing Street are handed over, it was revealed last night.
Ms Truss, who has rocketed to pole position as the frontrunner for the Prime Minister’s hot seat, is considering forming a ‘supergroup’ of allies to lead the treasury into the next generation.
Key allies, including Business Secretary Kwasi Kwarteng, Brexit Minister of Opportunities Jacob Rees-Mogg and veteran MP John Redwood would line up for formal positions under any cabinet headed by Britain’s third female Prime Minister.
According to sources, Ms Truss will also make efforts to tackle the “groupthink” prevalent within the Treasury and increase the number of economic advisers working in Downing Street.
She has already set lofty targets of 2.5 percent economic growth per year and an ambitious plan to help potential homeowners with Bank of England measures allowing rent payments to be used in future mortgage assessments.
A campaign insider told the Telegraph: ‘Liz rightly thinks that we cannot have failed, business as usual economic policy and will not be gripped by Treasury groupthink.
“It will be bold on the economy and cut taxes, tightly control spending and implement supply-side reforms that will deliver higher growth and more sustainable growth.”
Tory leader Liz Truss plans to evoke the ghost of Margaret Thatcher and bolster control of Whitehall’s economy if he gets the keys to 10 Downing Street.
Ms Truss, who has rocketed to pole position as the frontrunner for the Prime Minister’s hot seat, is considering forming a ‘supergroup’ of allies to lead the treasury into the next generation. Pictured: Ally and veteran MP John Redwood
Ms Truss’ aggressive tone on the economy harks back to the Thatcher era – with promises to boost growth, cut taxes and tighten spending.
She will also reportedly try the Joint Economic Unit No. 10/No. 11, the brainchild of former SPAD Dominic Cummings, over concerns it has not improved the effectiveness of economic policy decisions.
Instead, Ms Truss and her elected Chancellor will work closely as one team, per resources, with a particular focus on fostering a strong economic presence within Whitehall.
Mr Redwood, who served as Ms Thatcher’s head of policy in the 1980s and helped push her privatization bid, has lavishly praised Ms Truss’s leadership credentials.
He said: ‘It’s refreshing that we can make tax cuts at a time when people’s incomes are being hit hard. She has come up with the right measures.
“I wish her the best of luck and I will help her in any way I can. But I’m not a campaign advisor or anything.’
Key allies including Affairs Minister Kwasi Kwarteng and Brexit Chances Minister Jacob Rees-Mogg would be considered for formal positions under a possible cabinet led by Britain’s third female Prime Minister
During a visit to Norfolk today, the Secretary of State was asked whether she can actually deliver on all the commitments and promises she has made.
Mrs Truss told the broadcasters: ‘We can deliver. I am reversing the increase in national insurance. We didn’t have to. And we can afford that within our budget.
“I also think that by keeping taxes low, we will attract more businesses and investment in counties like Norfolk, which will help the economy grow and bring in that tax revenue.”
She continued: “And I am also determined to challenge the current orthodoxy around investment spending.
‘More of it should go to the countryside. More of it goes to backward areas, more goes to parts of Britain that don’t have good infrastructure yet, and that’s what I’m committed to.’
The lead frontrunner again reiterated her desire to review the Bank of England’s mandate, telling those on campaign: “It took place in 1997 in completely different times, and one of the problems of controlling inflation is monetary policy.
“It’s not just about interest rates, but also about the quantitative easing that is taking place.
And I want to look at the best practices of central banks around the world, see which banks have been the best at controlling inflation, and rethink the mandate.
“I didn’t make any decisions, and the chancellor didn’t make any decisions, about how exactly that mandate would change. But I think it’s important that we review our monetary policy, monetary policy institutions and the Bank of England’s mandate, and make sure it delivers for the times we’re in.”
Ms Truss’ aggressive tone on the economy harks back to the Margaret Thatcher era – with promises to boost growth, cut taxes and tighten government spending
It came as Ms. Truss rekindled her economic feud with Rishi Sunak yesterday when she accused the former chancellor of “fearmongering” over his warnings about her economic power plans.
The Foreign Secretary has vowed to pass tax cuts worth £20 billion and increase defense spending by around £23 billion if she becomes party leader and prime minister.
Sunak, on the other hand, was more cautious, warning that inflation – currently 9.4 percent and expected to rise – must fall before taxes are cut.
He has also made comments from Professor Patrick Minford, a Truss supporter, that her plans could raise interest rates by up to seven percent, adding more than £5,000 a month to the average mortgage.
The differing views have helped Ms Truss lead polls of Tory members who will vote to place one of them at number 10.
Ms Truss appeared to have increased her chances of beating Rishi Sunak and becoming Prime Minister last night after coming out on top when they were first grilled by Tory members.
The Foreign Secretary has been more relaxed than previous somewhat rambunctious forays into the campaign, playing out her local roots in her home city of Leeds.
She joked about her time in the city before vowing she’d beat “patronizing, plastic patriot” Keir Starmer in the next election if she became prime minister.
She was also praised for saying she was proud to have worked for Boris Johnson — and for supporting gender-specific toilets.