Tax cuts that could give high earners nearly £2,000 are ‘fair’, Truss says

Former Tory chancellor warns they will add to inflation

Liz Truss has described as “fair” tax cuts which could hand nearly £2,000 to high earners, as a former Conservative chancellor warned they would stoke already soaring inflation.

Lord Hammond said that cuts were “simply not the answer” and “not the right thing to do".

Many Tory MPs privately also admit they fear Ms Truss’s plans will exacerbate inflation at a time when experts already predict it could reach as high as 22 per cent.