Rishi Sunak vows to take 4p off income tax
By Kathryn Snowdon & James Gregory
BBC News
5 hours ago
Rishi Sunak has said he will cut the basic rate of income tax from 20% to 16% by the end of the next parliament if he becomes prime minister.
This would amount to a 20% tax reduction, he said - the "largest cut to income tax in 30 years".
But supporters of his Tory rival Liz Truss have accused the ex-chancellor of a U-turn on the issue and said that people cannot wait for tax cuts.
Conservative Party members will start receiving ballot papers later.
The winner of the leadership contest will be announced on 5 September, with Mr Sunak and Ms Truss competing for the No 10 job.
Mr Sunak said the policy is part of his "radical" tax vision, but it builds on his previously-announced 1p cut to income tax in April 2024.
He said he will take a further 3p off by the end of the next parliament, which could be as late as December 2029.
Supporters of Ms Truss said she would "cut taxes in seven weeks, not seven years", as she has pledged to scrap April's National Insurance rise, cancel a planned corporation tax rise and temporarily
suspend green levies on energy bills.
'Controlling inflation before cutting taxes'
In announcing his latest tax policy, Mr Sunak emphasised the need to control inflation before cutting taxes, adding that doing so now would make the situation worse and "endanger people's mortgages".
He told BBC Radio 4's Today programme: "I want to make sure that we can pay for it, I want to make sure that we can do it alongside growing the economy."
He said that his income tax cut pledge was "entirely consistent" with his campaign so far and denied that his plan was aimed solely to boost support for his campaign.
"I don't think embarking on a spree of excessive borrowing at a time when inflation and interest rates are already on the rise would be wise," Mr Sunak said.
Taxes have dominated the Tory leadership race, with the candidates clashing during the debates.
Last week, Ms Truss
said tax rises brought in by Mr Sunak would lead to a recession - but Mr Sunak told the foreign secretary that her tax cut plan would "tip millions of people into misery" and cost the Conservatives the next election.
Full article -
https://www.bbc.co.uk/news/uk-politics-62373675