Rishi Sunak says it is his “moral mission” to slash taxes once inflation is “back under control” as he battles Labour over the issue in the countdown to the UK general election on July 4.
Tax continues to be a key dividing issue as the Conservatives increase attacks on Labour’s plans in a desperate bid to shift their double-digit opinion poll deficit.
Mr Sunak received rare good news in an otherwise troubled campaign on Wednesday when official figures showed inflation had fallen back to the Bank of England’s 2 per cent target for the first time in three years.
Inflation had been as high as 11 per cent in October 2022, before Mr Sunak made bringing it under control one of his key pledges.
Mr Sunak said that with the rate of price rises curbed, “we can focus on cutting taxes”.
The Tories said they were “launching their plan to cut taxes” on Wednesday, with their manifesto promising tax cuts worth £17.2 billion ($22 billion).
They claim the package would be paid for by £12 billion of savings on welfare and £6 billion from tackling tax evaders.
The headline policies are a further 2p off employees’ national insurance by April 2027 and the abolition of the main rate of tax for the self-employed by the end of the parliament.
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The Tories also repeated their demand that opposition leader Keir Starmer rule out tax measures that they claim would be needed to fill a “£38.5 billion black hole” in Labour’s plans.
Mr Sunak’s party republished a list of 17 tax rises they say Labour could make, but the opposition party has said it refused to be drawn into the trap of responding to each claim.
“When I became prime minister, spiralling inflation was our biggest economic challenge – and so I made halving inflation my key priority,” Mr Sunak said.
“Now, with inflation back under control, we can focus on cutting taxes and ensuring working people have the financial security they deserve.
“As Conservatives, we believe in lower taxes because people, not governments, make the best decisions about how to spend their money.
“Cutting taxes is a moral mission for me and I want to deliver tax cuts at every stage of life.
“By contrast, raising tax is in Labour’s DNA. The plans set out in Labour’s manifesto would take taxes to the highest level in our country’s history – and that’s before you add in the £38.5 billion black hole in their promises.
“That’s the choice at this election – lower taxes with the Conservatives or a £2,094 tax hike under Labour that would hammer working families hardest.”
Mr Sunak called the July general election on May 22 after declaring inflation was “back to normal” in a “major milestone” for the country, after official figures that day showed inflation slowed to 2.3 per cent in April.
Mr Sunak was quick to declare victory – even though inflation was always expected to fall sharply as rising energy and food costs subsided.
“The Conservatives have raised taxes to a 70-year high,” a Labour representative said.
“Jeremy Hunt has admitted the Conservatives’ tax cuts are completely unfunded and will risk putting mortgages up again by £4,800. It’s time for change.”
Liberal Democrat treasury spokeswoman Sarah Olney said: “It is deeply embarrassing when Rishi Sunak fails at his own so-called moral mission, after years of hiking taxes on families and pensioners.
“Rishi Sunak and Conservative MPs shamelessly hiked taxes on hard-working people in a cost-of-living crisis, all whilst giving the biggest banks a disgraceful tax cut.
“Rishi Sunak has proven to be out of touch and must now be out of office after years of failure. You simply cannot trust the Conservatives on tax.”
