Liz Truss insists soaring energy bills are ‘a price worth paying’ to combat Putin: PM delivers tough message on New York trip as she vows to push ahead with mini-Budget cutting tax on firms and axing City bonus cap to boost growth even if it is ‘unpopular’
Liz Truss today insisted soaring energy bills are a ‘price worth paying’ to combat Vladimir Putin – as she vowed to push ahead with moves to boost the economy even if they are ‘unpopular’.
The PM, who is in New York for the UN general assembly, made clear ‘long-term security’ against Russia takes priority over the immediate pain of spiking gas costs.
And she struck a defiant tone ahead of a mini-Budget due to be unveiled by Kwasi Kwarteng on Friday, suggesting she will ignore critics to ditch the looming corporation tax rise and cap on City bonuses.
‘Not every measure will be popular and there are always vested interests, people who oppose measures that increase economic growth,’ she told journalists.
‘But what is important to me, what is important to the Chancellor, is that people have more opportunities, there is more investment, there are jobs with higher wages. And we are prepared to make that argument. This is about growing the size of the pie.’
Liz Truss, who is in New York for the UN general assembly, made clear ‘long-term security’ against Russia takes priority over the immediate pain of spiking gas costs
Truss insisted soaring energy bills are a ‘price worth paying’ to combat Vladimir Putin (pictured in Moscow today)
Ms Truss went on: ‘Lower taxes lead to economic growth, there is no doubt in my mind about that.
‘Now, there are of course other measures that we have to take to spur economic growth as well. During the campaign I talked about moving faster in getting growth projects going, mobile broadband fixing, the arteries of the economy – we need to do that too.
‘But having the highest taxes in 70 years and putting up corporation tax at a time when we’re trying to attract investment to this country isn’t going to deliver growth. We need to be competitive.’
The premier has already announced an eye-wateringly expensive policy for the government to fund freezing average annual household bills at £2,500 for two years.
International gas prices have been skyrocketing as Europe seeks to reduce dependence on Russia’s fossil fuels, with problems exacerbated by Putin turning off the Nord Stream gas pipeline.
Ms Truss told reporters travelling with her to a United Nations summit in New York that the UK ‘cannot jeopardise our security for the sake of cheap energy’.
‘The point I’m the point that I’m making is that it’s a price worth paying for Britain, because our long-term security is paramount,’ she added.
‘But what I don’t want to happen is that to be passed on to bill-payers who beyond that energy guarantee that I’ve outlined because I don’t think that’s right.’
Ms Truss struck a defiant tone ahead of a mini-Budget due to be unveiled by Kwasi Kwarteng (pictured) on Friday
French President Emmanuel Macron has urged a 10 per cent reduction in energy usage in the coming months as the EU tells member states to lower consumption this winter.
But Ms Truss is leaving it up to consumers to choose whether they want to go easy on heating and other power usage in the difficult months to come.
‘No, we are not talking about rationing of energy,’ she told reporters.
‘Of course, I always support energy efficiency measures like home insulation, that makes sense, and energy prices are higher than they were.
‘There is a strong incentive for businesses and households to invest in energy efficiency, but we do have reliable supplies of energy but ultimately everyone makes their own decisions about how they decide to do those things.’
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