Liz Truss to boost economy by considering targeted tax-cutting | Politics | News

The Prime Minister will push ahead with a number of important reforms this week after political activity was halted during the period of national mourning. As the Prime Minister meets world leaders in New York from tomorrow (TUES), ministers in the UK will unveil details of the plan to deal with the energy bills crisis and the strain on the NHS.

Ms Truss will return to see Chancellor Kwasi Kwarteng hand over an emergency mini-budget on Friday.

The 1.25 percent increase in social security contributions is expected to be reversed as early as November and planned corporate tax hikes halted.

Ms Truss has put economic growth at the heart of her plans to get the country’s finances back on track.

As many as 12 “full-fat freeport” investment zones could be announced in the financial statements, where taxes and bureaucracy will be cut to attract investment.

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The prime minister is said to go further by cutting taxes on people who live or work in the areas, but Insiders No. 10 downplayed the reports.

The government is reportedly looking at the West Midlands, Thames Estuary, Tees Valley, West Yorkshire and Norfolk as potential sites.

Ms Truss announced proposals to tackle sky-high energy bills just hours before the Queen’s death.

She promised a cap on household prices and measures to increase domestic supplies, including lifting the ban on fracking and new licenses for oil and gas in the North Sea.

Businesses will be supported for six months, but the details have not yet been finalized.

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Ms Truss said she would “end the UK’s short-term approach to energy security and supply once and for all”.

Shevaun Haviland, director-general of the British Chamber of Commerce, said businesses have suffered from huge increases in energy prices.

She said: “We really welcome the Prime Minister’s intervention in the energy crisis. It was fast, it was bold and it was wide.

“We really need to see the details now, particularly in terms of the level of the cap that we’re going to see for these companies. Six months is great, it will help us keep the doors open over the winter, but what will happen after that?”

Ms Haviland said the BCC does not believe a recession is inevitable and could be avoided if the right steps are taken, including cutting upfront costs for businesses.

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She said the BCC supports reversing social security contributions as a “significant” step to help businesses.

Ms Haviland said the Government’s approach so far has been “very positive”.

“So far so good,” she added.

Normal activities in Westminster have been suspended since the late monarch’s death, with business in both houses being suspended for the official period of mourning.

MPs are expected to return to the House of Commons on Wednesday when Business Secretary Jacob Rees-Mogg will set out details of the government’s plans to help companies through the energy crisis.

Health Secretary Therese Coffey will draw up plans to see the NHS through the winter months on Thursday.

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