Liz Truss tax cuts policy ‘ridiculous’ and risks 1970s-style inflation, economists warn

Experts reject Tory candidate’s claim tax cuts ‘will decrease inflation’ – and warn of austerity era ahead

Conservative leadership candidate Liz Truss’ plan to bring in immediate tax cuts is likely to push up prices and risks a return to 1970s-style inflation, top economists have warned.

The foreign secretary has pledged to bring in tax cuts of at least £30bn if she becomes prime minister, claiming on Thursday: “My tax cuts will decrease inflation.”

Vowing to take on Treasury “orthodoxy” and the economic consensus, the new favourite in the Tory contest insisted that her plan to cut taxes was “not a gamble” and would not drive up soaring inflation even further.