Liz Truss: We must reconsider the case for conservatism by cutting corporation tax

Liz Truss will say the Tories must become the “party of business” again. Photo: Leon Neill/Getty Images

Liz Truss and Dame Priti Patel are to lead calls for tax cuts at the Conservative Party conference, with the former prime minister warning that more millionaires are fleeing Britain than Russia.

Both politicians will appear at a peripheral event. with former Cabinet ministers Sir Jacob Rees-Mogg and Ranil Jayawardena in an intervention that appeared to be aimed at putting pressure on Rishi Sunak.

Speaking at the Great British Growth Rally in Manchester, Ms Truss will say the Tories must become the «party of business» again by cutting taxes and bureaucratic red tape, while Dame Preeti will push for «economic freedom and low taxes». Warning that current policies are pushing wealthy residents abroad, Ms Truss will say: “It cannot be true that the UK, a country brimming with entrepreneurial spirit, ranks third behind China and India in the outflow of wealthy people.

“Even Russia manages to retain more wealthy people than we do.”

The comment refers to a report by the consulting company Henley & Partners, which forecast a net outflow of 3,200 millionaires from the UK in 2023, compared with 3,000 from Russia.

Ms Truss will say the Tories «must unleash British business by cutting corporation tax.»

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“We cannot stand idly by while companies like AstraZeneca move operations overseas due to huge tax burdens and small businesses close shop because they are drowning in bureaucratic red tape.

“We must strive to attract the world's best businesses and encourage people to start businesses here at home. We must not normalize looting from corporate coffers.»

Earlier in 2023, pharmaceutical giant AstraZeneca announced it had chosen Ireland over the UK for a £320 million plant, citing «discouraging» UK taxation. speed.

Liz Truss will warn that current policies are pushing wealthy residents overseas. Photo: Stefan Rousseau/PA

In her speech, Ms Truss will make a concrete challenge to Chancellor Jeremy Hunt as he prepares for the autumn statement in November.

She is expected to say: “Ahead of the autumn statement This year we must make the Conservative Party the party of business again by cutting corporation tax to 19 per cent.

“This is how we will make Britain grow again. Free business will get us there, not the Treasury, not the government and not the state.

“Only free business can lift the UK out of 25 years of economic stagnation.”

In his speech to Dame Priti will argue that current government spending and interest on debt are «unsustainable», calling on the Tories to «end this socialist disease».

A former home secretary will warn: “If we don't cut spending, the tax burden will continue to rise and we won't have growth. We can't tax our way to growth.»

Annoy Rishi Sunak's allies.

While the message from the two MPs is likely to please party activists, Ms Truss' intervention will irritate Rishi Sunak's allies.< /p>

She will make the comments a year after the Tory conference, which was marred by financial uncertainty following her “mini-budget” tax cuts.

The fallout from the conference led her to abandon her flagship policy of abolishing the 45p top income tax rate, but it was not enough to save her premiership, which ended just weeks later.

Mr. Ms Truss's return of corporation tax to 19 per cent would cause particular resentment among the Prime Minister's loyalists.

Although she had promised in her mini-budget to scrap a planned rise in corporation tax from 19 to 25 per cent, she was forced to do a U-turn to appease financial markets.

In her speech on Monday, Ms Truss will say: “Only free business can deliver the economic growth and tax revenues on which our public services depend.”

“So let's Let's give British businesses more freedom through tax relief — the freedom to thrive, to employ, to export, to research, develop and invest in the future, and to keep Britain growing again.»