Rishi Sunak, trailing behind the race to become Britain’s next prime minister, has vowed to cut the base income tax rate by 20% by 2029 in a possible make-or-break roll of the dice by the former home secretary. Finance.
Sunak, once seen as the favorite to replace Boris Johnson as he helped steer the economy through the ravages of the COVID-19 pandemic, has fought his rival, Secretary of State Liz Truss, who has pledged immediate tax cuts.
Mr Sunak said he remained focused on tackling inflation but once that was achieved he would continue with an already announced plan to take 1 pence off income tax by 2024, then take another 3 pence by the end of the next parliament, probably around 2029.
The two pledges would bring income tax rates from 20p to 16p.
Sunak said the plan would represent the biggest income tax cut since Margaret Thatcher’s time.
“It’s a radical vision, but it’s also a realistic one,” he said in a statement on Sunday, a day before Conservative Party members were due to receive their ballots to vote for the party’s new leader.
The British hunt for a new prime minister was set in motion on 7 July when Johnson was forced to announce his resignation after months of scandal. Conservative lawmakers have narrowed a number of candidates down to Ms Truss and Mr Sunak, with party members announcing the decision on September 5.
With inflation soaring to 9.4% at a 40-year high and growth stalling, the economy dominated the early stages of the competition. fuel inflation further.
Sunak said every penny cut in the income tax rate would cost about £6 billion ($7.3 billion) a year, a figure he believes would continue to push the UK debt-to-GDP ratio down as the economy grows in line with official forecasts.
Ms Truss has argued that tax cuts are now needed to boost the economy. A recent poll by YouGov showed Tru
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