Kate Andrews Kate Andrews

The economic battle between Sunak and Truss

Photo by Getty Images

The Tory grassroots have got themselves a real economic debate this summer: Rishi Sunak’s ‘Thatcherite’ economic philosophy vs Liz Truss’s ‘Reaganite’ plans to boost growth.

It’s not the most obvious distinction, given the former prime minister and president were great free-market allies. Both also cut tax. But it’s about the order of priorities: like the Thatcher years, Sunak believes that the most important task is getting inflation under control, which was reporting this morning to have hit a 40-year-high, rising by 9.4 per cent on the year in June. This is how he justifies the tax hikes he ushered in as chancellor, comparing them to what Nigel Lawson did in Thatcher’s government. Truss takes the view that it’s best to slash tax now and go for growth, as was the top pursuit of the Reagan administration.



Both will have questions to answer.



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