Liz Truss has said she will unleash investment and boost economic growth by taking “full advantage” of Brexit if she becomes prime minister.
At a roundtable with key investors in the City of London on Friday morning, the Foreign Secretary will set out a series of measures which she claims would “put money back into the pockets of hard-working people”.
The Tory leadership hopeful said she would implement supply side reforms, including reforming Solvency II and The Markets in Financial Instruments Directive (MiFid) regulations.
Solvency II is a directive that codifies and harmonises the EU insurance regulation.
MiFid is a regulation that increases the transparency across the European Union’s financial markets and standardises the regulatory disclosures required for firms operating in the EU.
Her campaign said such a move would release billions for investment in British infrastructure, energy projects and the high-tech industry.
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 don’t pass the test, her government would work with industry experts to create better home-grown laws, or repeal them altogether.
Liz Truss speaking at the All Nations Centre in Cardiff (PA/Jacob King)
The Foreign Secretary said: “As prime minister, the British people can trust me to unleash investment and boost economic growth right across the country.
“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.
“We haven’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.
“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.”
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, like Bournville and Saltaire, attracting long-term private sector investment and creating new job opportunities across the country.
The Foreign Secretary has also pledged to reverse the national insurance rise and cancel the planned hike in corporation tax.