Rishi Sunak and Liz Truss have laid out their tax plans for the country should they become the next prime minister (PM) in September.
Truss revealed plans to slash £30bn off taxes immediately if she becomes PM, which will be funded by borrowing. She also plans to scrap the rise to National Insurance, cancel the planned 6% rise in corporation tax, and would temporarily lift green levies on energy bills for two years
Truss said the UK has “anaemic growth”, and that the Green Levy has put extra money on people’s energy bills, which she believes people cannot afford in the current circumstances.
Meanwhile, Sunak accused Truss of making unfunded tax cuts that amount to £55bn, and said his plan would cost £4.3bn, but it could be delivered within existing borrowing rules as it was temporary.
Sunak pledged to scrap the 5% VAT rate on household energy for one year from October if the price cap on bills rises above £3,000 for the average household. He said that the temporary tax cut would save average households £160 a year.
Sunak also revealed he would increase corporation tax by asking the top 10% of companies in the UK to pay “a bit more” tax in order to fund public services.
He said he will not cut taxes until inflation is under control as this will put a “large” bill on the country’s credit card, which would “pass the tab to our children and grandchildren”.