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JAKARTA - British Foreign Secretary Liz Truss has 'officially' entered the race to replace Boris Johnson as leader of the Conservative Party and British Prime Minister.

Announcing her plans to run in the Daily Telegraph, Truss told the paper she would cut taxes from "day one" if she became prime minister.

The race for the position Johnson vacated continues to be dynamic, with many candidates putting policy plans around taxes at the heart of the program on offer.

According to the BBC on July 11, Truss also indicated she would join her rivals in planning to cut corporate taxes, reverse National Insurance hikes, and reform business rates.

Truss told the paper she would "fight the election as a Conservative and rule as a Conservative", adding she would also take "immediate action to help people cope with the cost of living".

"We face huge challenges at home in the midst of the global economic crisis. We face huge challenges abroad, from an aggressive Russia to an increasingly assertive China," she wrote in an article published on the daily's website, citing TASS.

liz truss
 Liz Truss. (Wikimedia Commons/Policy Exchange)

It is known, that the 1922 Tory MPs committee will set on Monday the schedule for the leadership election. A number of names have emerged as candidates, with lower rate programs offered for businesses, individuals, or both, in addition to tax priorities.

The plethora of tax cut plans that have been announced so far marks a stark contrast to Rishi Sunak, the former finance minister who last week decided to step down and run in the race, who has played down prospects for a tax cut before public finances improve.

Rishi Sunak has not yet set out his economic position for leadership, promising more details in the coming days and weeks. But in a video launching his campaign, he warned against "entertaining fairy tales" that would "make our children worse tomorrow".

It is known that taxes have emerged as a key promise for many candidates, but questions have been raised about how they will be paid.

Nadhim Zahawi, the former education minister who was appointed finance minister to replace Sunak last week, joined the chorus of leadership candidates in calling for lower taxes in a new interview with the Telegraph, telling the newspaper there was "nothing wrong".

A spokesman also promised that Zahawi, who has faced claims that his tax affairs have been investigated, would publish his tax return if he became one of the last two candidates in the race.

liz truss
Liz Truss in Bali. (Foreign Ministry Doc./Aditya Karno)

Previously, experts had raised questions about the new prime minister's ability to cut taxes without affecting public spending.

Paul Johnson, director of the Institute for Fiscal Studies think tank, said the forecast for a budget surplus of around £30 billion in 2024 was calculated at a time when the inflation forecast was lower.

Writing on Twitter, he added that using headroom to fund tax cuts would "almost certainly" require public sector pay cuts or more borrowing.

"Everyone wants lower taxes. But (we) need to be clear about the consequences," he added.

Separately, Labor leader Sir Keir Starmer will aim for potential leaders to sign "unfunded spending commitments", describing them as taking part in a "fantasy economic arms race".

In his speech on Monday, Sir Keir is also expected to criticize them for opposing the tax hikes introduced by Johnson and Sunak, having voted for them earlier.

Conservative Party Leader and British PM Candidates:

  1. Former Minister of Equality Kemi Badenoch
  2. Attorney General Suella Braverman
  3. Newly appointed Foreign Minister Rehman Chishti
  4. Former Health Minister Jeremy Hunt
  5. Former Health Minister Sajid Javid
  6. Minister of Commerce Penny Mordaunt
  7. Transport Minister Grant Shapps
  8. Former Finance Minister Rishi Sunak
  9. Member of Parliament Tom Tugendhat
  10. Former Minister of Education and Minister of Finance Nadhim Zahawi

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