Rishi Sunak wants to cut income tax in the UK by 20 per cent over seven years. He believes this will be the biggest reduction in thirty years. Sunak made the pledge on Monday, when 175,000 Conservative Party members cast their ballots. He is running against Liz Truss to succeed Boris Johnson as leader of the Conservative Party and Prime Minister of the United Kingdom.
Sunak will cut the base rate from 20 pence per British pound to 16 pence per pound, equivalent to a 20 percent tax cut. While still Chancellor of the Exchequer, Sunak had already announced a reduction of 1 pence in the pound by April 2024. A further cut of 3 pence per pound will come at the end of the next parliamentary term, which runs until December 2029, he writes. BBC.
“It’s an extreme view, but it’s a realistic one and there are some core principles that I’m not willing to compromise, whatever the cost,” Sunak said in a statement. “First, I will never cut taxes in a way that only increases inflation. Second, I never make promises I can’t keep. Third, I will always be honest about the challenges we face.
Promises about taxes dominate the conservative succession race. Sunak called Truss’ tax-cutting plans “comforting fairy tales.” He accused her of being “dishonest” with the electorate and engaging in a “self-sabotaging act” of “condemning our party to defeat” in the upcoming elections. Truss’ plan, he said, was a “debt frenzy” that would cost up to £50 billion. “I think that will exacerbate the inflation problem,” he told BBC radio.
Still, the current State Trustee Secretary wins. According to his supporters, he will “cut taxes in seven weeks, not seven years”.