In UK, Rishi Sunak unlikely to cut taxes before 2023, differs with Truss' views: Report

As the race for the United Kingdom's leadership heats up, former Treasury Secretary Rishi Sunak is expected to not reduce personal taxes until autumn 2023 in order to prevent inflation, The Guardian reported. Meanwhile, his opponent Liz Truss has pledged to introduce an emergency budget to rapidly lower taxes in the country. According to reports, the difference in views between the two Prime Ministerial candidates is likely to be a clear dividing line as they seek party leaders' support. Earlier, Sunak stressed that he would delay tax cuts until the inflation rate was under control.

Before stepping down from the post of UK Chancellor, Sunak had devised an autumn tax plan which is anticipated to provide relief to some businesses. Meanwhile, Truss claimed that her tax-cutting initiatives will "reduce inflation" and that she would maintain low tax rates as the Prime Minister of the country. "My tax cuts will decrease inflation," she responded when asked whether borrowing more than £30 billion to pay for the tax cuts will increase or decrease inflation, as per The Guardian. 

Sunak, Truss vying for PM's post with their varying views on economy

According to reports, Sunak is believed to be wary about promising tax cuts that will further increase inflation because all inflation predictions made so far have been proven to be inaccurate. Additionally, there are concerns about the impending hikes in fuel prices in the coming months, particularly if there are more interruptions to the Nord Stream gas pipeline from Russia amid the ongoing war in Ukraine. Meanwhile, Truss stated that she wants to challenge the conventional wisdom about economic growth. "We have had a consensus of the Treasury, of economists, with the Financial Times, with other outlets, peddling a particular type of economic policy for 20 years,” she told BBC Radio 4. 

UK Prime Minister race

It is significant to mention here that Sunak, who has served as UK’s chancellor in Johnson’s government, topped Wednesday's final ballot of MPs with 137 votes, followed by Truss with 113 votes. However, polls have suggested that Sunak is less popular among the Conservative Party whose MPs will cast votes for their preferred candidate in the month of August. Notably, the country is likely to get a new Prime Minister on September 5 at the latest.  

Image: AP/Facebook/@Rishi Sunak