Why Liz Truss's tax cut pledges will hamper the economy and do nothing for those most in need - Mark Casci

Unable and unwilling to commit to any policy agenda, he has merely been drifting, even electing to take two weeks off work during the worst period of economic turbulence in a generation.

Also unfurling a towel on his sun lounger has been chancellor Nadhim Zahawi who felt it proper to himself take a holiday while inflation spirals out of control and the Bank of England warns of an impending recession.

Meanwhile the two candidates seeking to replace Mr Johnson seem to have little concern for the cost of living crisis engulfing the country.

Instead Rishi Sunak is more concerned with “saving Brexit” by pledging a bonfire of red tape while Liz Truss is playing to the populist gallery in promising tax cuts.

The latter policy would be comical if it were not so dangerous.

The country’s finances are already on a knife edge, with the national deficit at eye-watering levels.

The notion that shaving some tax burdens off of people’s income will suddenly prompt a tsunami of pent spending demand is based on pure delusion.

Any reductions in taxes will simply lead to a fall off in revenue to the exchequer, choking off funds when it needs it the most.

This will mean less money for public services.

Just as important is also the inconvenient reality that cutting taxes will not benefit those who need it the most.

The poorest in society tend to be those on state pensions or in receipt of Universal Credit, meaning they do not pay any tax to begin with.

And for businesses the impact will be negligible. The current reason for such high inflation lies in the supply chain.

With materials and energy in such short supply, costs have risen.

If corporation tax is reduced businesses will still face the same lack of ability, meaning it is less likely they will want to invest in new premises or personnel.

A far greater notion would be for targeted tax cuts to be imposed, ones that have the widest impact. Cuts on fuel duty for example would make a giant difference to all businesses and almost all consumers.

In seeking to cut taxation, Ms Truss is seeking to do what Theresa May did in trying to emulate every Conservative’s idol. I am talking here of course about Margaret Thatcher.

However the tools that Mrs Thatcher had at her disposal to effect significant economic and societal change during the 1980s no longer exist.

There are no national industries to sell into private ownership, no coal mines to shutter, no financial sector regulations which can be relaxed.

And, following our departure from the European Union, there is no wider economic framework that can facilitate frictionless trade with its member states.

Ms Truss’s commitment to Northern Powerhouse Rail is to be lauded as it will make a world of difference to the ability of businesses in the North to attract the best talent.

However we have of course been here before and many of us will be sceptical that Ms Truss would sign this into law once handed the keys to Number 10.

I am aware this paints a rather gloomy assessment of the person who is almost certain to become our next Prime Minister.

But, as the dereliction of duty at the top of our current Government is showing, sometimes the best thing to do is nothing.

Intervention from Whitehall can only go so far in combating geopolitical issues causing havoc on economies the world over.

Increases in interest rates and improvements to supply chains will eventually kick in to start bringing the cost of living down.

There will of course be disruption from what happens until then but it will also give time for pause to reflect on what truly matters.