Liz Truss was appointed Prime Minister on Tuesday and named Jacob Rees-Mogg business secretary. They take the helm with a recession looming and small business owners facing potentially catastrophic energy price increases – what can we expect from the new team?
On the campaign trail, Truss promised to be “unashamedly pro-business”. We’ve looked at what we know and summarised the reaction from the UKBF community.
Writing in The Telegraph, Truss confirmed that she would “start cutting taxes from day one”.
“I would reverse the National Insurance increase that came in during April, make sure we keep corporation tax competitive so we can attract business and investment into Britain, and put the Covid debt on a longer term footing.”
That means scrapping plans to increase corporation tax to 25% and reverse Boris Johnson's 1.25% increase to National Insurance.
It’s been reported that Truss is preparing a £40bn support package to cut British businesses’ energy bills, which are not protected by the price cap.
She’s also expected to help consumers by capping household energy bills at around £2,500 – a £1,000 reduction from the expected October energy cap level.
The package of support is expected to be announced on Thursday.
We don’t know much about Rees-Mogg’s approach to supporting the UK’s small businesses.
He is pro-Brexit and was previously chair of the European Research Group, which supports Eurosceptic Conservative.
Commenting on The Procurement Bill in July, he said the aim was to introduce more flexible procurement processes and improved payment terms to help small businesses that are bidding on government contracts.
Beyond that and a reference to “Margaret’s vanilla custards at the Tunstall indoor market” when discussing Small Business Saturday, Parliamentary records show barely any mentions of small businesses by Rees-Mogg.
Others noted the difficulty of the brief she’s inherited.
“In all seriousness I cannot think of another PM inheriting such a poor looking economy, the UK has started to be frowned upon for inward investment now as well, which will feed into yet higher costs,” said UKBF member MBE2017.
In terms of policy, Japancool wants the Prime Minister to start by cutting taxes.
“Cut taxes! Never mind how big the hole in the nation's finances will be. It's right to give the wealthy more money! Yeah, that's going to help the majority of the country weather the economic crisis,” he noted, perhaps sarcastically.
Japancool was more critical about Rees-Mogg, recommending members brush up on Adam Smith and Charles Dickens, and predicting “we'll have poor houses back soon”.
On the campaign trail, Truss promised to be “unashamedly pro-business”. We’ve looked at what we know and summarised the reaction from the UKBF community.
Will Liz Truss “deliver” for small businesses?
Liz Truss was formerly the foreign secretary and is known for her libertarian views on economics and trade.Writing in The Telegraph, Truss confirmed that she would “start cutting taxes from day one”.
“I would reverse the National Insurance increase that came in during April, make sure we keep corporation tax competitive so we can attract business and investment into Britain, and put the Covid debt on a longer term footing.”
That means scrapping plans to increase corporation tax to 25% and reverse Boris Johnson's 1.25% increase to National Insurance.
What will Liz Truss do about businesses’ energy bills?
Energy bill increases are a critical cause for concern among business owners. We recently covered how price hikes could lead to mass closures in the hospitality sector and UKBF’s thread about rising energy prices has over 300 posts.It’s been reported that Truss is preparing a £40bn support package to cut British businesses’ energy bills, which are not protected by the price cap.
She’s also expected to help consumers by capping household energy bills at around £2,500 – a £1,000 reduction from the expected October energy cap level.
The package of support is expected to be announced on Thursday.
What will Jacob Rees-Mogg business secretary do to help small businesses?
Jacob Rees-Mogg joined Truss’ cabinet as business, energy and industrial strategy secretary late last night. He was previously minister for Brexit opportunities and leader of the House of Commons.We don’t know much about Rees-Mogg’s approach to supporting the UK’s small businesses.
He is pro-Brexit and was previously chair of the European Research Group, which supports Eurosceptic Conservative.
Commenting on The Procurement Bill in July, he said the aim was to introduce more flexible procurement processes and improved payment terms to help small businesses that are bidding on government contracts.
Beyond that and a reference to “Margaret’s vanilla custards at the Tunstall indoor market” when discussing Small Business Saturday, Parliamentary records show barely any mentions of small businesses by Rees-Mogg.
UKBF’s members’ views of our new Prime Minister
The main thread about Truss' appointment is sceptic – “Liz Truss PM – Gone Within a Year?” – with MOIC commenting that she’ll be “tied in knots” at Prime Minister’s Questions.Others noted the difficulty of the brief she’s inherited.
“In all seriousness I cannot think of another PM inheriting such a poor looking economy, the UK has started to be frowned upon for inward investment now as well, which will feed into yet higher costs,” said UKBF member MBE2017.
In terms of policy, Japancool wants the Prime Minister to start by cutting taxes.
“Cut taxes! Never mind how big the hole in the nation's finances will be. It's right to give the wealthy more money! Yeah, that's going to help the majority of the country weather the economic crisis,” he noted, perhaps sarcastically.
Japancool was more critical about Rees-Mogg, recommending members brush up on Adam Smith and Charles Dickens, and predicting “we'll have poor houses back soon”.
