Rishi Sunak said the plan would mark the biggest income tax cut since the time of Margaret Thatcher.
Rishi Sunak said the plan would mark the biggest income tax cut since the time of Margaret Thatcher.
Rishi Sunak, who is trailing in the race to become Britain’s next prime minister, has vowed to reduce the basic rate of income tax to 20% by 2029 in a possible make-or-break throw of the dice by the former finance minister.
Mr Sunak, who was once seen as the favorite to replace Boris Johnson when he helped propel the economy through the ravages of the COVID-19 pandemic, clashed against his rival, Foreign Secretary Liz Truss, who Promised immediate tax deduction.
Mr Sunak said he is focused on tackling inflation, but once this is achieved he will follow the already announced plan to take 1 pence from income tax in 2024, and then by the end of the next parliament. Will take a further discount of 3 pence. , possibly around 2029.
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Two pledges will take income tax from 20p to 16p.
Mr Sunak said the plan would mark the biggest income tax cut since the time of Margaret Thatcher.
“It’s a radical approach, but it’s also a realistic one,” he said in a statement on Sunday, a day before Conservative Party members began receiving their ballots to vote for the party’s new leader.
Britain’s search for a new prime minister began on 7 July when Mr Johnson was forced to announce his resignation after months of scandal. Conservative lawmakers have turned down a field of candidates to Ms Truss and Mr Sunak, with party members announcing the decision on 5 September.
With inflation rising to a 40-year high of 9.4% and growth stalling, the economy dominated in the early stages of competition, with Mr. Sunak arguing that Truss’s plan was to reverse the increase in Social Security contributions and cancel a planned increase in the corporation. is of. Taxes will further increase inflation.
Mr Sunak said each penny cut in the income tax rate would cost around £6 billion ($7.3 billion) a year, a figure he said would cost Britain’s debt-to-gross if the economy grew. The proportion of domestic product will decline. With official forecast.
Ms Truss has argued that tax cuts are now needed to get the economy going. A recent poll by YouGov showed Ms Truss has a 24-point lead over Mr Sunak among Conservative Party members.