Taxation and cost of living
Truss’ clear economic priority is to cut taxes, a move he insists will restart a stalled economy and help people with rising energy bills. He promised to reverse the recent rise in national insurance and scrap a planned rise in corporation tax, at a combined cost of around £30bn a year. Truss’ team has also floated the idea of a 5% VAT cut, or income tax cut, to help household budgets. While Truss has said her plans will be paid for with budget margins and delays in repaying Covid-related debts, critics have argued she will need to borrow significant sums, at potentially expensive interest rates, at some cost to the economy. One option could be to extend a windfall tax to energy businesses, but Truss said she doesn’t like that. There is also considerable skepticism about a tax cut response to the energy cost crisis, which would disproportionately benefit high earners and do nothing for those dependent on pensions or benefits. Truss did not rule out more immediate help with energy bills, but refused to say exactly what that might be and spoke of her distaste for “handouts”. It is a position that is going to be tested against economic reality.
Climate and green energy
While Truss has stressed her commitment to the UK’s existing net zero target and her team insists she will focus on renewables, some on the greener side of the Conservative party are concerned about her priorities. One of Truss’ few direct cost-of-living policies would be to suspend green levies on energy bills, which are used to invest in renewable energy schemes. He opposes onshore wind and described seeing solar farms on farmland as “one of the most depressing sights” of modern Britain. Instead, he supports fracking for shale gas and reportedly wants to see a push for new drilling in the North Sea and has backed a major expansion of nuclear power. He has not talked about efforts to reduce energy consumption, such as subsidizing insulation for homes.
Medical and social care
Truss has faced relatively little scrutiny over her plans for the NHS and care, especially given the crisis in the health services, and the widespread expectation that things will get much worse in the winter. While she remains committed to existing plans to support the NHS, there is the issue that Truss has promised to reverse the increase in national insurance with the aim of providing cash first to help clear the NHS backlog worsened by Covid and in the longer term to paying for better social care. Many of the problems with delayed ambulances are because hospital beds are filled with people who cannot access social care. Truss will need a coherent plan, and soon.
Leveling up
This is another area Truss has said relatively little about during the leadership campaign, but could take on greater importance as she faces the country and her own MPs as prime minister. The upgrade was Boris Johnson’s self-declared defining goal, and while the Trust has said it remains committed to that agenda, it is unclear whether it would support it with significant spending. Truss said she would hike “in a conservative manner,” seen as focusing more on deregulation and tax cuts. One of the reasons Johnson was popular with many “red wall” Tory MPs was that they could point to specific infrastructure projects funded by Whitehall, whether a new local bypass or a revamped high street. If Truss were to remove this, it could cause concern. Archie Bland and Nimo Omer take you to the top stories and what they mean, free every weekday morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply.
Immigration and Home Affairs
During the campaign, Truss promised to double down on his policy of deporting asylum seekers and other immigrants to Rwanda and look for other countries to take them. It remains to be seen how feasible this is, or whether it would have any impact on the number of people crossing the Channel informally, even if some did leave. The Trust is likely to link any failure to remove individuals to the continued jurisdiction of the European Court of Human Rights. While removing the UK entirely from its oversight would be complex and difficult, it is likely to move ahead with plans for a so-called UK Bill of Rights, with fewer protections for asylum seekers and others.
Culture wars
Truss is more of an ardent amateur culture warrior than a diehard, keeping the Tory faithful happy at the hustings with passing jabs at ‘woke’ culture and trans rights. However, if, as reported, he appoints Suella Braverman as home secretary and Kemi Badenoch to education, the temperature could rise significantly. Culture war issues tend to focus more on seeking debate and political divides than on actual policies, but especially in education it could lead to changes in approach, for example on transgender rights and free speech.
Foreign policy and Brexit
Broader foreign policy is likely to be more of the same, given that Truss led it under Johnson, so expect more robust support for Ukraine, as well as occasional gaffes such as her recent refusal to say whether French President Emmanuel Macron , he is a neighbor and a close ally, he is “friend or foe”. Truss has done much of her tough work on the Northern Ireland protocol and her camp has hinted that she could trigger Article 16, the emergency procedure clause in the post-Brexit deal with the EU, within days of entry at No. 10. But with so many other crises to deal with and the leadership contest, Truss may decide a potential trade war isn’t what she needs either.
