UK PM race: Rishi Sunak pledges 'largest tax cut' in 30 years, slams Liz Truss' plans

As the UK Prime Minister race intensified, former chancellor Rishi Sunak said that he would cut the income tax in 2024 from 20 per cent to 19 per cent and 6 per cent by 2029. Slamming Foreign Secretary Liz Truss' £30 billion tax cut plans that can “add fuel on the fire” of inflation, Sunak also announced the VAT cuts on energy bills to provide relief to the UK consumers from the high cost of living. Sunak on Sunday, July 31 pledged that he would slash taxes by 20% by the end of the decade. 

"Firstly I will never get taxes down in a way that just puts inflation up," Sunak said, according to Sky news. "Secondly I will never make promises I can't pay for. And thirdly I will always be honest about the challenges we face," he added. 

Largest cut in income tax for 30 years

UK Prime Minister candidate, Sunak, was widely grilled this week for his decision to tax hike and raise the income tax thresholds despite the COVID-19 pandemic. As he announced the largest cut in income tax for 30 years, Sunak said that this will be funded by "additional tax receipts generated by forecast economic growth", adding that he will not increase the government debt, according to Sky news. Furthermore, the UK Prime Minister candidate promised that he will "drive greater efficiency and reform" in the government to ensure the value for money. Sunak announced the tax cut as the ballots for the final leadership vote started to roll in. 

Sunak iterated that winning this leadership contest without "levelling with people about what lies ahead would not only be dishonest." He added that it would be "an act of self-sabotage that condemns our party to defeat at the next general election and consigns us to a long period in opposition." He then took a swipe at his rival Truss, saying: "There is no more serious choice than the one now facing Conservative members: to decide the person who leads our country at home and abroad during difficult times." He furthermore said, "As they turn to that decision I would urge them to treat with caution any vision that doesn't involve any difficult trade-offs and remember that if something sounds good to be true - then it probably is."

Both Sunak and Truss have been competing over the tax cut policy in a bid to become the prime minister. Truss promised £30bn of tax cuts if she was to take office, and Sunak stressed that it was a “radical vision” but shall also be “a realistic one."  “I would urge them to treat with caution any vision that doesn’t involve any difficult trade-offs and remember that if something sounds good to be true — then it probably is," he said.