Rishi Sunak promises biggest income tax cut in 30 years
Former chancellor vows to slash basic rate from 20pc to 16pc, as he fights to overcome Liz Truss’s lead in Tory leadership contest
Rishi Sunak has promised the biggest income tax cut in 30 years, vowing to slash the basic rate from 20 per cent to 16 per cent if he becomes prime minister.
In a major announcement as he battles to close the gap to frontrunner Liz Truss, the former chancellor pledged to deliver the change by the end of the next parliament.
move would mean millions of households paying a fifth less in income tax. Someone earning the average UK salary of £32,000 would save about £777 under the plans.
Mr Sunak’s campaign argued that the move was consistent with his previous stances, given the tax cut would only be adopted once inflation drops and would not be funded by borrowing.
But a Truss campaign source dubbed the move a “flip-flop” aimed at winning votes from Tory members, after three weeks of fiercely criticising his rivals for promising major tax cuts.
Mr Sunak said: “What I’m putting to people today is a vision to deliver the biggest income tax cut since Margaret Thatcher’s government.
“It is a radical vision but it is also a realistic one and there are some core principles that I’m simply not prepared to compromise on, whatever the prize.”
But Simon Clarke, the Chief Secretary to the Treasury, who is backing Ms Truss and held his post under Mr Sunak, countered: “Liz will cut taxes in seven weeks, not seven years.”
Postal ballots in the race to replace Boris Johnson as Conservative Party leader and prime minister start being sent out on Monday, giving Tory members the chance to vote early in the race before the result is announced on Sept 5.
The campaign battle so far has been dominated by differences on economic approach between Mr Sunak and Ms Truss, the Foreign Secretary – most notably on taxation.
This is after him saying it’s not economically viable to cut taxes.
Not exactly consistent after what he was saying in the leadership debate, that he wouldn’t anything right now, and discrediting the others for saying they would.