PRIME Minister Liz Truss yesterday gambled the entire British economy on a bombshell tax revolution to boost growth and kill inflation.
Her Chancellor, Kwasi Kwarteng, stunned MPs and City money men with a big-spending emergency budget, sweeping away decades of dithering, stagnation and decline.
This was the dawn of a new age of Trussonomics and the end of 12 years of timid Tory rule. One senior Tory MP said: “It’s sh*t or bust.”
Markets watched cautiously as Kwarteng ripped up Gordon Brown’s spiteful 45p top tax rate, sliced the basic rate to 19p, scrapped business tax hikes and cut stamp duty.
He confirmed £150billion in domestic and business energy cost cuts, limiting household bills to £2,500.
This will slash five per cent off inflation, cutting the cost of index-linked pensions, welfare and other compulsory government spending.
He axed duty hikes on booze, abolished IR35 penalties for the self- employed and changed benefit rules.
He ushered in dozens of enterprise zones and took a chainsaw to EU red tape, telling gaping Labour MPs after each announcement: “I have another.” It was the biggest tax revolution since 1988.
Labour wanted to know where the money was coming from.
They are now in the invidious position of having to say they will reverse Kwarteng’s actions.
He’s hoping lower taxes, meanwhile, will encourage investment in UK plc. Ministers hope his steps will bear fruit before the 2024 election.
Julian Jessop, of the Institute of Economic Affairs, called his shake-up “a risk worth taking”. He added: “There are no easy options.”
As Tory legend Margaret Thatcher would say: “There is no alternative.”