If elected, the former chancellor vows to reduce the basic rate of income tax from 20p to 16p by the conclusion of the next parliament.
If elected prime minister, Rishi Sunak pledges to reduce the basic rate of income tax from 20 pence per pound to 16 pence by the conclusion of the next parliament.
In his most recent pitch to Conservative Party members, the former chancellor asserts that the 20% decrease would be “the largest income tax cut in three decades.”
Mr. Sunak asserts that it will be financed by “increased tax receipts generated by anticipated economic growth,” guaranteed not to expand the national debt to cover the expense.
In addition, he promises to “push more efficiency and change” within the government to provide better value for money.
But his opponent’s team, Foreign Secretary Liz Truss, accused Mr. Sunak of flip-flopping on his tax policy.
As party members begin receiving their ballots for the final leadership vote, Mr. Sunak stated that his plan was “radical” but “practical,” and that it adhered to his “fundamental economic convictions.”
He stated, “I will never reduce taxes in a manner that increases inflation.” “I will never make promises that I cannot keep. And finally, I will always be truthful about the obstacles we confront.
Because winning this leadership campaign without informing the public of what lies ahead would not only be dishonest, but it would also be an act of self-sabotage that condemns our party to defeat in the next general election and relegates us to a lengthy spell in opposition.
In an apparent jab at his competitor, the former prime minister added: “There is no more important decision than the one currently facing Conservative members: deciding who will lead our country domestically and internationally during challenging times.
“As they consider this decision, I tell them to be wary of any vision that doesn’t require severe trade-offs and to keep in mind that if something seems too good to be true, it probably is,” the author writes.
In the contest between Mr. Sunak and Ms. Truss for the office of prime minister, Mr. Sunak and Ms.
She has suggested £30 billion in tax cuts should she be elected, including the cancellation of the projected rise in company tax and the reversal of the government’s National Insurance increase.
According to Mr. Sunak and several analysts, such action would cause the UK’s already record-high inflation to rise even further.
Ms. Truss, meanwhile, asserts that her proposal would “raise tax revenues through increasing the economy” and accuses the former chancellor of “choking off growth by raising taxes” to a 70-year high.
A member of her campaign staff accused Mr. Sunak of making “another U-turn on tax cuts” after he announced he would reduce VAT on energy bills, stating that while the move was “good,” it was “a shame that he didn’t do this as chancellor when he constantly hiked taxes.”
They further stated: “Unfortunately, tomorrow will be jam-packed. People require tax reductions within seven weeks, not seven years. He has also conditioned it on achieving growth first, well aware that his corporation tax increases are contractionary.
The public and members of the Conservative Party can see through these flip-flops and about-faces.
However, one of Mr. Sunak’s friends, Conservative MP John Glen, rejected the accusation, stating that the ex-chancellor was “laying out both the task and the goal.”
He told, “As Conservatives, we want to bring tax cuts forward as rapidly as possible when they are reasonable, not when they are unfunded, they will burden future generations, and the economy is in a state of extreme uncertainty.”
Ms. Truss’s approach has been well-received by the membership, as seen by the fact that she currently leads the polls, and has also garnered the endorsement of prominent party officials over the weekend, including Defence Secretary Ben Wallace and former leadership candidate Tom Tugendhat.
And on Sunday night, Chancellor Nadhim Zahawi became the most recent person to support her campaign, writing in the Daily Telegraph that she will “overturn the outdated economic dogma and conservatively run our economy.”
Team Sunak claims, however, that there is still “much to play for” and that the contest “has only just begun,” citing a Savanta ComRes poll of local Tory councilors showing a 2% gap between the final two candidates.
Damien Green, a senior backbencher, and former minister, also confirmed his support for the former chancellor, stating that he trusted Mr. Sunak to “unite the party” and “provide a solution” to the difficulties facing the United Kingdom.
In her most recent policy proposal, Ms. Truss will aim to “liberate British agriculture to improve national food security.”
During her visit to the South West of England today, she will pledge to eliminate “burdensome EU laws and red tape” to “boost productivity.”
She will also commit to a short-term extension of the government’s seasonal employees scheme to provide farmers and producers with the necessary labor force, as well as engage with the industry to solve longer-term skill gaps.
Ms. Truss stated, “The pandemic and cost of living crises have demonstrated that it is more important than ever that we have a high-quality and cheap supply of British food.”
“As a former secretary of state for the Department of Environment, Food, and Rural Affairs, I understand the issues faced by farmers, and they can trust me to implement the necessary improvements.”
However, a representative from Mr. Sunak’s team stated that her statement “does nothing for farmers and food.”
They also stated: “She blames Brexit and fails to recognize the potential it presents to aid farmers and food production; she has no plan to combat inflation, which has severely impacted input costs; and, due to her track record in this area, she fails to address trade agreements.
“The true colors of the Remainers are beginning to emerge.”
Members of the Conservative Party will begin receiving their ballots today and will be the only ones with a voice in whether Mr. Sunak or Ms. Truss becomes the next prime minister of the United Kingdom.
Voting will be open until September 2, and the winner will be announced on September 5.
The following day, the new prime minister is anticipated to replace Boris Johnson.
