'Simplistic' Liz Truss has warned her VAT cut will 'collapse public finances'

Liz Truss will 'crush public finances' if she pursues a huge VAT cut, warns a leading economist, amid renewed confusion over her contingency plans for the cost of living.

The likely next bonus The minister has launched a plan to cut sales tax from 5% to 20% - but the head of the Institute for Fiscal Studies called the idea "very worrying '.

Ms Truss is also considering reversing a four-year freeze on income tax thresholds and has sent conflicting briefing notes about how it will help with the bills. soaring energy.