With inflation rising in Britain to an all-time high
Cost of living crisis tops campaigns for Downing Street candidates
The British people are facing difficult days with the increase in the cost of living.
AFP
Sunak prefers to provide direct aid to low-income families.
Reuters
Liz Truss has pledged to cut taxes and cancel increases in National Insurance contributions.
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The race for Downing Street is dominated by a cost-of-living crisis, with double-digit inflation and Britain's economy on the brink of recession, but the two contenders to replace Prime Minister Boris Johnson for Conservative Party leader and prime minister are taking divergent approaches to the issue.
Cost of living
UK inflation is currently at 10.1%, its highest level in 40 years, with expectations of a rise to 13% in October.
Analysts at Citibank believe it could exceed 18% next year on the back of rising energy costs.
The new ceiling on energy prices is due to be announced tomorrow, at a time when some experts expect that some families will soon pay an amount of 6000 pounds ($7,100) annually on gas and electricity.
A study prepared by the University of York indicated that more than half of British families, or the equivalent of 15 million people, will not be able to use adequate heating in their homes by January next year.
tax cut
Front-runner Liz Truss pledged to cut taxes and cancel increases in National Insurance contributions that fund public health service and social benefits.
It also proposes cutting fuel taxes that fund the transition to cleaner energy, and has rejected temporary solutions to the cost-of-living crisis, such as direct government aid.
Supporters of the candidate, who is currently secretary of state, say she plans to draw up an emergency budget within two weeks if she wins the party vote.
Her opponent, Rishi Sunak, believes that tax cuts do not affect low-income families, as they do not generate enough income to pay them anyway.
The former finance minister, who is considered wealthy thanks to his career in finance and business and his marriage, prefers to provide direct aid to low-income families, who are likely to be affected by higher prices.
He described pledges to cut taxes at a time of economic decline and a sharp rise in inflation rates as "a figment of the imagination."
Instead, he proposed lowering sales taxes on energy bills, and lowering taxes on commercial property.
energy investment
Both candidates formally supported the UK's ambitions to reach carbon neutrality by 2050. But Truss, which favors investing heavily in energy, including controversial fracking technology if supported by the population, wants to do it better without hurting residents and businesses .
It would prefer more energy to be produced from the North Sea, and supports the current British government's policy on investing in nuclear power and renewables.
Between pro- and anti-Brexit
The Terrace supported remaining in the European Union prior to the 2016 referendum on membership in the bloc.
Today, she is a supporter of Brexit and has advocated for a proposed law to scrap parts of the Northern Ireland Protocol the UK government signed with the European Union, which governs post-Brexit trade in the province.
She pledged to remove all EU laws from the UK's body of law to help jump-start growth.
Like Sunak, no proposals have been made to deal with the crisis of chronic labor shortages in the post-Brexit UK, especially for seasonal workers.
Sunak has been an ardent advocate of Brexit for years, and has been a vocal proponent of free ports to spur growth.
financial rules
Truss has called for a reform of regulators in the City of London.
In particular, it wants to merge the Financial Conduct Authority and the Prudential Regulatory Authority, which oversees banks and is part of the Bank of England, with the Payments Regulatory Authority.
Trace criticized the Bank of England's response to high rates of inflation, and suggested studying the statute that gave it operational independence over monetary policy in 1997. In response, the Governor of the Bank of England, Andrew Bailey, noted that the UK's financial credibility depends on the bank's independence. about the government.
UK inflation is currently at 10.1%, its highest level in 40 years, with expectations of a rise to 13% in October.
The new energy price cap is due to be announced tomorrow, with some experts predicting that some families will soon pay £6,000 ($7,100) a year on gas and electricity.
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