UK's Truss vows to 'unleash investment and boost economic growth'

Tory leadership hopeful plans to revisit, revise or dismiss every piece of UK's EU-derived business regulation

UK Foreign Secretary Liz Truss speaks during a Conservative party membership hustings at the All Nations Centre on August 3, 2022 in Cardiff, Wales. Rishi Sunak and Liz Truss are holding hustings around the UK for Conservative party members as they vie to become their leader and the next UK Prime Minister. Getty Images
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Liz Truss plans to boost investment and economic growth by taking “full advantage” of Brexit if she becomes UK prime minister, the Tory leadership contender will tell a roundtable of key investors in the City of London on Friday morning.

The foreign secretary will also set out a series of measures which she claims would “put money back into the pockets of hard-working people”.

Ms Truss said she plans to enact supply-side reforms, including reforming Solvency II and Markets in Financial Instruments Directive regulations.

Solvency II is a directive that codifies and harmonises the EU insurance regulation while the directive is a regulation that increases transparency across the bloc's financial markets and standardises the regulatory disclosures required for firms operating there.

Her campaign said such a move would release billions for investment in British infrastructure, energy projects and the high-tech industry.

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Ms Truss also pledged to set a “sunset” deadline for every piece of EU-derived business regulation and test whether it supports UK growth by the end of 2023.

For regulations that do not pass the test, her government would work with industry experts to create better home-grown laws or repeal them altogether.

“As prime minister, the British people can trust me to unleash investment and boost economic growth right across the country,” said the foreign secretary.

“For too long, we have allowed those who create wealth and high-quality jobs — dynamic businesses and hard-working people — to be weighed down by onerous EU bureaucracy.”

She added that the country hasn't moved fast enough to take full advantage of Brexit.

“I’ll make it a priority to slash EU red tape and ensure we have the right tools in place to attract investment and deliver growth. This is just one way we’ll tackle the cost-of-living crisis and put money back into the pockets of hard-working people,” she continued.

“The way to tackle the cost-of-living crisis is by growing the economy and we cannot tax our way to growth. My economic plan will get our economy moving by reforming the supply side, getting EU regulation off our statute books and cutting taxes.”

A source close to Ms Truss said: “Liz knows that business has a central role to play in delivering growth and levelling up.

“She will take the immediate action to create the best environment to attract investment right across our economy.

“She knows we cannot tax our way to growth. She will slash red tape, cut taxes and create an environment that empowers long-term private sector investment and ultimately delivers for hard-working people across the country.”

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Ms Truss’s government would also create new, low-regulation “Investment Zones” and “full-fat freeports” across the UK.

Her campaign team said they would empower local businesses to play a central role in creating new model towns, such as Bournville and Saltaire, attracting long-term private sector investment and creating new job opportunities.

The foreign secretary has also pledged to reverse the national insurance rise and cancel the planned increase in corporation tax.

Updated: August 04, 2022, 9:30 PM