London Daily

Focus on the big picture.
Saturday, Jul 05, 2025

Sunak would not cut taxes before autumn 2023, in clear divide with Truss

Sunak would not cut taxes before autumn 2023, in clear divide with Truss

Former chancellor would delay cuts until inflation under control, while rival has pledged immediate cuts
Rishi Sunak would not cut personal taxes until at least autumn 2023 to avoid fuelling inflation, the Guardian understands.

The position is expected to be a clear dividing line between Sunak and his rival, Liz Truss, who has promised an emergency budget to cut taxes immediately.

Sunak’s pledge to Conservative members will be that it is the most Conservative position to be fiscally responsible and to offer the country sound economic management.

Sunak has previously said he would not cut taxes until inflation was under control, which the source said was unlikely to be before late 2023 – meaning it would be unlikely to take effect before April 2024. His autumn tax plan, devised as chancellor, would give relief to some businesses earlier.

Truss said on Thursday that her plans to cut taxes would “decrease inflation”, and that as prime minister she would “keep taxes low”. When asked whether borrowing more than £30bn to fund the tax cuts would increase or decrease inflation, Truss said: “My tax cuts will decrease inflation.”

Sunak, who is trailing Truss in polling of members, is said to be concerned that all inflation forecasts have thus far been incorrect, and is highly cautious of promising tax cuts that would further increase inflation.

There are also concerns about the further eye-watering hikes to fuel bills in the months ahead, especially if there are more cutoffs of the Nord Stream gas pipeline from Russia.

Crucially, the former chancellor is said to be deeply worried by Keir Starmer’s attacks on the “fantasy economics” in the Conservative leadership race. The language used by Labour to criticise unfunded spending promises is an echo of the attacks that Tories have long used against Labour – which is now polling ahead on economic credibility.

Former Treasury sources also suggested that tax cuts did not rate particularly highly as a public priority – as opposed to fuel bills or public services – though the principle of tax cuts is totemic among Conservative party members.

Sunak will pitch his campaign as an election-winning return to core values of Conservatism, and say that credibility on the economy will be the most crucial thing to winning the next election.

Truss told BBC Radio 4’s Today programme that she wanted to challenge the orthodoxy on 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 said.

“It hasn’t delivered growth. People are struggling with the cost of living: it is wrong to be increasing their taxes at a time when it is difficult for them to pay their bills.”

In recent days, Truss has been highly critical of the Bank of England, even hinting at changing its mandate. Asked whether she could name a chancellor or governor of the Bank of England or leading economist that would agree with her view, Truss could name only Patrick Minford of Cardiff University.

The race will run until the announcement of the new prime minister on 5 September, including multiple hustings and TV debates over the coming weeks.

Despite Truss coming second among MPs, she is the favourite among Conservative party members, according to polling, with Sunak described as the underdog. About 160,000 fee-paying members – half aged over 60, 97% white and a large proportion male and from southern England – will have the chance to vote next month.
Newsletter

Related Articles

0:00
0:00
Close
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
×