Faisal Islam says Liz Truss’s plan to extend Covid debt would increase not cut taxes

Faisal Islam has challenged Tory leadership hopeful Liz Truss’ plan to stretch out the nation’s Covid debt as a means to reduce taxes.

The BBC’s economics editor called out the foreign secretary during Monday’s (25 July) one-on-one debate between former Chancellor Rishi Sunak and Truss.

“You say you’re going to stretch out the debt, which is 300 to 400 billion pounds, over 50 or 100 years... but long term interest rates are higher”, said Islam.

“I don’t see how this funds any tax cuts, it will require tax rises” he remarked.

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