Liz Truss last night vowed to unleash Britain’s post-Brexit potential by fully freeing the UK of Europe’s shackles.
In a move designed to pump billions into the economy, the Foreign Secretary set out plans to review 2,400 pieces of legislation left over from Britain’s decades of EU membership by the end of next year.
Those deemed to be holding Britain back will be ditched or replaced with regulations better suited to Britain’s economy.
Campaign sources said the move could save businesses and consumers billions of pounds, and make the UK a more attractive place to invest.
Proposals include scrapping EU rules that prevent pension and insurance firms from investing in British infrastructure – a move ministers believe could unlock billions in private sector capital.
The Foreign Secretary Liz Truss set out plans to review 2,400 pieces of legislation left over from Britain’s decades of EU membership by the end of next year if she wins the Tory leadership
Campaign sources said the move could save businesses and consumers billions of pounds, and make the UK a more attractive place to invest
EU import rules could be adjusted or scrapped to cut the cost of food, while a more liberal regulatory regime for gene-edited crops could also allow the production of cheaper food.
Streamlining EU import controls could also cut the cost of goods from around the world, and ‘overbearing’ rules on emerging technology could be relaxed to allow developments such as precision crop spraying by drones to be brought in.
Leftover EU regulations also continue to ban the sale of more powerful vacuum cleaners and outlaw the use of imperial measures for selling most goods.
Miss Truss said: ‘As prime minister I will unleash the full potential of Britain post-Brexit, and accelerate plans to get EU law off our statute books so we can boost growth and make the most of our new-found freedoms outside of the EU.
‘I have proved as trade secretary and in the Foreign Office that I am the candidate who can be trusted to deliver on the promise of Brexit and make Britain a higher-growth, higher-productivity powerhouse.
‘EU regulations hinder our businesses and this has to change. In Downing Street, I will seize the chance to diverge from outdated EU law and frameworks and capitalise on the opportunities we have ahead of us.’
Although Britain left the EU in 2020, around 2,400 regulations were copied across to the UK statute book to avoid disruption.
Miss Truss’s rival Rishi Sunak is also committed to reviewing remaining EU laws and said this week he would establish a new ‘Brexit Delivery Department’ to get through the regulations in his first hundred days at a rate of one per hour.
Miss Truss’s rival Rishi Sunak is also committed to reviewing remaining EU laws and said this week he would establish a new ‘Brexit Delivery Department’ to get through the regulations in his first hundred days at a rate of one per hour
Brexit Opportunities minister Jacob Rees-Mogg has been pushing for the laws to be reviewed or scrapped in cases where they are holding Britain back. But the plan was scaled back last month following protests from ministers, including Environment Secretary George Eustice, whose department is responsible for overseeing almost 600 of the regulations, many of which relate to employment and health and safety.
But Miss Truss has now pledged to press ahead with the scheme in full if she wins the leadership contest.
Mr Rees-Mogg said that while many of the regulations appeared ‘marginal’ in isolation, they would ‘combine to usher in a revolution: not a French-style revolution with blood running in the streets and the terror of the guillotine, but a British-style revolution whereby marginal improvements move inch by inch so that soon we will have covered the feet, and the feet will become yards, and the yards will become chains and then furlongs and miles, until the journey is complete’. Meanwhile, Miss Truss faced questions over her tax plans after an economist backing her proposals suggested interest rates could rise as high as 7 per cent. Mr Sunak has warned that her plan to slash taxes by more than £35billion could push up interest rates.
But Patrick Minford, an economist cited by Miss Truss, told The Times keeping taxes low was ‘key to growth’. ‘I’m pleased that she has understood the argument,’ he said.
‘Yes, interest rates have to go up and it’s a good thing. A normal level is more like 5 to 7 per cent and I don’t think it will be any bad thing if we got back to that level.’
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Big business backs her vow to cut tax
Business leaders last night signalled their backing for Britain’s next prime minister to cut taxes.
The issue has become central to the Tory leadership tussle.
And Wetherspoon boss Tim Martin and Pimlico Plumbers founder Charlie Mullins have both indicated their backing for the Foreign Secretary.
Liz Truss wants to scrap a planned hike in corporation tax, ditch a recent national insurance increase and give households a one-year break from paying green levies on energy bills. Her tax-cutting plans add up to £35billion.
Mr Mullins, who sold Pimlico Plumbers for £145million last year, said cuts were needed ‘as soon as possible’ and that Miss Truss’s plans ‘are the right ones’. He added: ‘I don’t trust Sunak. He says we can’t do any cuts.’
Mr Martin, who bought his first pub in 1979 and now runs a chain of more than 850, said: ‘Yes, you can cut taxes to stimulate business – but only if you have a sensible economic plan. Rishi and Boris didn’t really have one. Maybe Liz can put one together.’
Clive Watson, executive chairman of the City Pub group, added: ‘I sort of agree with what Liz Truss says about tax cutting. But I also agree with Rishi Sunak that inflation has to be brought under control.’
Wetherspoon boss Tim Martin has indicated his backing for the Foreign Secretary over her pledge to cut taxes
Justin King, the former Sainsbury’s chief executive who now serves on the board of Marks & Spencer, said he backed a national insurance cut – reversing the recent increase ‘at least’. But he added: ‘Otherwise money should be targeted at those that need it most in the cost of living crisis.’
John Longworth, the former British Chambers of Commerce chief who quit to back the Brexit campaign in 2016, said the Government must ‘cut ASAP’.
Mr Longworth, who started out as a science business entrepreneur and today leads a network supporting family businesses, said keeping a lid on corporation tax would encourage investment. He also called on the Government to scale back fuel duties and green levies as well as cutting income tax.
He said the Treasury already had £30billion of ‘headroom’ because the economy had done better than expected – and that more could be found by shrinking the size of the state.
Warren East, chief executive of aircraft engine giant Rolls-Royce, said his company would work with whoever becomes Conservative leader but that he would ‘of course’ like to see the firm pay less tax.
Business Secretary Kwasi Kwarteng told Sky News yesterday: ‘Boris Johnson indicated a few weeks ago he was looking to make those tax cuts, and Liz will deliver on them.’