London Daily

Focus on the big picture.
Friday, Jul 25, 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
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
×