The Foreign Secretary, who has argued for £30 billion in tax cuts, is exploring VAT cuts of up to 5 percentage points and increasing the personal allowance, the level at which people start paying income tax on their earnings. Mr Truss has previously ruled out giving “handouts” to ease income pressures, describing it as “taking money from people in taxes and then giving it back to them in benefits”. Its allies on Sunday said a bailout package was unlikely to include additional one-off payments. However, officials close to the foreign minister stressed that all options would be considered and that a final decision on financial support would be made after the announcement of the new party leader on September 5. Rishi Sunak’s allies have branded the latest proposed VAT cut, first reported in The Sunday Telegraph and The Sunday Times, as “flawed” and “regressive”. An official from the former chancellor’s team said: “VAT is not paid on essential items such as food, so it does not help families pay their supermarket bills.” “The VAT cut will benefit higher income households the most, leaving little or no benefit for lower income households who will need the most help this winter,” they added. Former chancellor and Tory leadership candidate Rishi Sunak at a Q&A during a tournament in Birmingham © REUTERS Meanwhile, Tory MPs expressed growing concern about the impact of energy price rises on households and businesses, after regulator Ofgem announced on Friday that the energy price cap would rise by 80 per cent in October , receiving bills of up to £3,549 for the average. user. “I’m hearing from voters who are turning up for the first time worried about how they’re going to get through this winter,” a senior Tory MP told the Financial Times. “Some of the existing aid packages don’t even touch the sides.” Another Conservative MP thought Truss was right not to give details of her plans until she was elected, but said they were concerned about the ability of households to manage energy prices during the winter. “The concern is ‘how long will this go on?’ they said. Other Tory MPs raised the alarm over the future of small firms. “I hear companies are seeing 300 percent increases in bills. Businesses will close as some of these numbers are not sustainable,” a senior Tory supporter argued. “We need to give small and medium businesses more financial support for their energy bills,” added another. “If they have to pass the cost on to customers, that will only lead to further inflation.”

Over the weekend, outgoing Prime Minister Boris Johnson blamed Moscow for the cost of living crisis, saying Russian President Vladimir Putin wanted the UK to “buckle” in the face of “staggering” energy price rises, referring to the natural gas crisis. gas that ignited. from the war in Ukraine. Johnson added that the nation had “resilience enough to get through” the coming months, adding that his successor would introduce a “huge package” of economic support. This week Johnson will reiterate the importance of committing to long-term net zero commitments alongside implementing short-term measures to ease pressures on the cost of living, the Daily Telegraph reported. The cost of living crisis is just one of many pressing issues facing the next prime minister, with concerns over continuing NHS waiting list backlogs and ambulance delays. Matthew Taylor, chief executive of the NHS Confederation, argued on Sunday that a “frank discussion” was needed about the health service’s capacity heading into winter.