Liz Truss rejects 'handouts' as solution to cost of living crisis

Conservative leader Liz Truss said that it would help people cope with the cost of living crisis by lowering taxes, not giving “handouts”.

With household energy bills set to soar to more than 3 £500 in October, the government is facing growing calls for a repeat of former Chancellor Rishi Sunak's £30billion package to mitigate the impact of rising prices earlier this year.

But Ms Truss downplayed the Bank of England's warnings of 13% inflation and the longest recession in a generation, telling Tory campaigners: 'Forecasts are not the d estin."

She told the Financial Times that as prime minister she would "consider what more can be done" to help bill-oriented families spiraling fuel this winter.

But she said, "The way I would do things is in a conservative way to reduce the tax burden, not hand out handouts."

His approach was challenged by a former CBI chairman, Paul Drechsler.

Recommended'Shame on you': climate disrupt Liz Truss speech in Conservative leadership election ursConservatives can 'say goodbye' to next election if they fail to control inflation, says Sunak< img src="https://static.independent.co.uk/2022/08/05/22/05215506-d9489602-f757-4cc8-8166-34cbb8ee4bfb.jpg?quality=75&width=230&auto=webp" alt="Sunak and Truss tear up over economy in recent leadership races" height="56" width="82" layout="responsive" class="i-amphtml-layout-responsive i-amphtml-layout-size-defined" i- amphtml-layout="responsive"/>Sunak and Truss tear each other apart over economy in latest leadership roundups

Business leader tells BBC's Today Radio 4: "I would say to anyone who shows up for the prime minister that thinking about policy or fiscal change just won't be enough come September when people are already being hit by these rising energy costs.